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 Limited, 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 inquiry 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.
