The Delhi High Court on Wednesday, Nov 23, reserved its order on a plea of DLF Ltd challenging an order of market regulator SEBI to probe accusations by a Delhi-based businessman that he was duped of Rs.34 crore by the realty major and its alleged associate firm Sudipti Estates.
A bench of Justice Vipin Sanghi reserved its order after hearing both sides. Former Attorney General and senior counsel Soli Sorabji, appearing for the construction company, said that the order of Securities and Exchange Board of India (SEBI) has been passed in violation of principles of natural justice as the realty firm was not provided an opportunity to present its case before the market regulator.
He said that no notice was issued and documents against the firm were produced without any information.
Citing a division bench order in the matter, Sorabji also said the decision of SEBI should have been passed after hearing both sides and the non-compliance of the direction led to the violation of principles of natural justice.
Additional Solicitor General (ASG) Prag Tripathi, appearing for SEBI, said when a regulatory body passed an administrative order to form a prima facie opinion, there was no need to provide an opportunity to other parties to be heard.
The ASG added that the regulator was still at the stage of investigation to make its mind whether there was any violation of public issue norms or not.
He said if it was found that there was any incriminating material to order a probe during the investigation, the parties would be given opportunity to present their case.
