Now Reading: Embassy REIT unitholder alleges disclosure lapses, moves SEBI
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Embassy REIT unitholder alleges disclosure lapses, moves SEBI
A unitholder of Embassy Office Parks REIT has approached the Securities and Exchange Board of India (SEBI), alleging repeated and delayed disclosure of criminal proceedings involving the REIT's sponsor and promoters. The…
A unitholder of Embassy Office Parks REIT has approached the Securities and Exchange Board of India (SEBI), alleging repeated and delayed disclosure of criminal proceedings involving the REIT's sponsor and promoters. The representation, dated August 17, 2026, filed through Sigma Chambers, seeks regulatory and criminal action against Embassy REIT, its manager and trustee. It claims that material information concerning criminal proceedings against Embassy Property Developments Pvt Ltd (EPDPL) and promoters Jitendra Mohandas Virwani and Karan Jitendra Virwani was not disclosed in time or was inaccurately disclosed.
The unitholder has alleged that a CBI case in Hyderabad saw a criminal petition withdrawn on January 7, 2022, but Embassy REIT continued to state in reports for years that an interim stay was operating. The position was corrected only in the 2025 Annual Report, after about four years. The representation also questions the role of Axis Trustee Services Ltd, alleging inadequate oversight, and points to a SEBI order of April 29, 2026, fining Axis Trustee Rs 10 lakh in a related matter. Embassy REIT has raised about Rs 14,750 crore through private placements in 2023-2025.
Embassy Group has rejected the allegations as a recycled and legally untenable attempt by persons acting at the behest of Sterling & Wilson. It said similar allegations had been considered by judicial forums, with the Bombay High Court dismissing petitions and imposing costs. The group added that SEBI's counsel had indicated the regulator's findings were likely against the petitioners.
Indian Opinion Analysis
Under the SEBI (REIT) Regulations, 2014, a REIT trustee has an active and continuing duty to ensure timely and accurate disclosures. The key question here is whether Axis Trustee Services independently verified the status of the CBI case before certifying disclosures over multiple years. The SEBI order fining the same trustee Rs 10 lakh in April 2026 for a fit-and-proper assessment failure sets a recent regulatory precedent. The Bombay High Court's earlier dismissal of related petitions does not preclude SEBI from examining fresh evidence of delayed disclosures. SEBI will now decide whether to issue a show-cause notice or initiate adjudication proceedings against the REIT and its trustee.
Source: livemint.com
This story was synthesised by AI from the source linked above.
