The Delhi High Court has directed stock market regulator SEBI to conduct probe against real estate giant DLF for alleged ‘mis-statement’ in its Red Herring Prospectus while launching its IPO in 2007.
The court passed the order after it was alleged by a person that the DLF had intentionally made a false statement that it had no association with Sudipti Estates Pvt Ltd, one of its subsidiary companies against which a criminal case was filed for duping him Rs 31 crore.
“A direction is issued to the SEBI to undertake an investigation into the complaints made by the petitioner,” Justice S. Muralidhar said, adding that the probe would be completed within three months.
Earlier, SEBI had refused to entertain the complaint filed by petitioner Kimsukh K. Sinha on the ground that it was filed a day before IPO was to close. The court, however, turned down the regulator’s contention.
Sinha had alleged he had paid around Rs 31 crore to DLF group subsidiary Sudipti Estate to develop his two lands at Sohna, Gurgaon but they failed to do so and refused to return the money.