The Securities and Exchange Board of India (SEBI) on Thursday said it would probe real estate company DLF following allegations by Kimsuk Krishna Sinha that he had been duped of Rs.34 crore.
“The said investigation shall focus on the violations, if any, of the provisions of the erstwhile SEBI (Disclosure and Investor Protection) Guidelines, 2000, read with the relevant provisions of the Companies Act, 1956,” SEBI said. The investigation follows instructions to SEBI from the Delhi High Court.
In May 2006, DLF had, through its merchant banker, filed a Draft Red Herring Prospectus (DRHP) with SEBI for a public issue. In the DRHP, the company had, inter alia, said the entity, Sudipti Estates, was its associate. The DRHP was withdrawn and later, the company had filed a fresh DRHP on January 2, 2007, wherein Sudipti was not mentioned as being associated with it.
The said fresh DRHP was processed by SEBI and observations were given on May 7, 2007. The IPO opened for subscription on June 11, 2007 and closed on June 14, 2007. The complainant had alleged that he was a victim of the manipulations indulged in by the DLF Group through its associates/group companies, particularly Sudipti.
