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Real Estate

DLF says all material disclosures made in QIP as Supreme Court serves notice

Updated : August 22, 2019 12:39 PM IST

The Supreme Court has issued a notice to real estate behemoth DLF and accused it of failing to disclose some material information in its qualified institutional placement (QIP) documents, the Hindu Business Line reported on Thursday.

Ashok Tyagi, whole-time director of DLF, gave the company's side of perspective on the matter in an interview with CNBC-TV18.

“Right from our initial public offering [IPO], there have been certain vested interests who have been litigating against the DLF’s public issue. They had approached the Securities and Exchange Board of India. Sebi has issued an order which was completely quashed by Securities Appellate Tribunal [SAT],” he said.

“Since then, every time we have had a public event, there has been some form of disclosure complaint filed by the same complainant. The current QIP was no exception,” he added.

Tyagi said that all disclosures have already been made by DLF in its QIP.

“All material disclosures that had to be done had been completely put out in the QIP. This particular case that this complainant has mentioned is an old land acquisition case pertaining to an extremely small parcel of land — 5-6 acres of land, unlicensed most of it — which is by a company which is not our subsidiary.

"So this gentleman again made the petition to the SC that this case should have been disclosed. This is an old case. All the SC has done is to seek our views on whether this complainant should be impleaded in the said matter or not. They have passed no observation, all they have asked [for is] our and Sebi’s views on whether this person should be impleaded in that ongoing litigation of land or not,” said Tyagi.

Speaking about investigation into violation of land ceiling laws and issues concerning benami purchases, licensing, stamp duty payments etc. by DLF, Tyagi said: “The primary company in this matter is not our subsidiary. So I will not like to opine on that. These are all the issues that the honourable SC will hear in due course. All that SC has issued a notice to us is that whether this complainant has approached us to be impleaded, should he be impleaded and what are your views on that.”

SC notice to the company was not about disclosures at all, he added.
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