The Securities Appellate Tribunal
(SAT) set aside the monetary penalty imposed in 2014 on real estate giant DLF, on the latter’s chairman, Kushal Pal Singh, and some of its subsidiary entities. The order was imposed by the Securities and Exchange Board of India
(Sebi), the total penalty being Rs 860 million on the company and seven of its top officials.
“The tribunal by a majority decision set aside the order passed by the whole time member of Sebi by holding that the appellants have not violated the Sebi Act
and the regulations framed thereunder,” presiding officer J P Devadhar said in the SAT
Sebi had also banned DLF
and seven others from accessing the capital markets
for three years; SAT
had overturned this in 2015. Sebi appealed against this to the Supreme Court, where the outcome is yet to be decided.
Sebi had said DLF
suppressed the material information in the prospectus it had issued before its public issue in 2007. The company’s first draft prospectus was filed in May 2006 and contained information about the three subsidiaries—Sudipti, Shalika, and Felicite.
In a separate order, Sebi had imposed penalties on Sudipti
Estates and 33 other entities, including DLF
Home Developers, DLF
Retail Developers, and DLF