Millennium Post

DLF files appeals with SAT against Sebi’s Rs 26-cr fine

DLF on Wednesday filed an appeal before Securities Appellate Tribunal (SAT) against capital market watchdog Sebi’s order slapping Rs 26 crore penalty on it for indulging in “fraudulent and unfair trade practices”.

In the biggest-ever penalty in a single case, Sebi, in February, had imposed penalties on DLF, its top executives, their family members and various other related entities for entering into “sham transactions”.

The violations were found with regard to suppressing key information at the time of the realty major’s IPO in 2007. DLF said in a regulatory filing that it has filed an appeal before SAT against the order. Securities and Exchange Board of India (Sebi), through the order on February 26, had imposed a cumulative penalty of Rs 26 crore on the company. DLF said the appeal would come up for hearing before the tribunal in “due course” and added that a copy of the appeal has been served on Sebi. Apart from DLF, its chairman K P Singh, his son and Vice Chairman Rajiv Singh, daughter Pia Singh, as also three “housewives” married to ‘key management personnel’ of the DLF group were also penalised for “fraudulent and unfair trade practices”.

The realty major had earlier said that it did not violate any laws. In the same case, Sebi in October last year barred DLF and its six top executives, including Singh and his two children, from markets for three years for suppressing key information at the time of its IPO in 2007, including about certain “sham transactions” involving an associate firm, Sudipti Estates.
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