HC rejects DLF plea against Sebi probe

The Delhi High Court today imposed a cost of Rs 2 lakh on realty major DLF while dismissing its plea against market regulator Sebi's order to probe an allegation that it duped a city-based businessman of Rs 34 crore in collusion with its associate firm Sudipti Estates.

Justice Vipin Sanghi turned down DLF's plea against the market regulator's order, saying "I dismiss the writ petition with costs quantified at Rs 2 lakh. Cost to be paid within four weeks."

Justice Sanghi dismissed the DLF plea saying the order of the Securities and Exchange Board of India (Sebi) against it was "based on reasons".

"A perusal of the impugned order [of Sebi] shows that it certainly cannot be said that it has been passed arbitrarily or is irrational. The impugned order is clearly based on reasons which are relevant and material," it said.

DLF, in its petition, had sought quashing of Sebi's order, issued on October 20, for investigation into the allegations of complainant Kimsuk Krishna Sinha in 2007 against it and Sudipti Estates.

The court, in its 61-page judgement, said the Sebi Act has not put any bar on the market regulator to consider any evidence to form its opinion to order an investigation.

"There is no bar or impediment cast on the board by the Sebi Act to say that it would not entertain or look into evidence that the complainant may rely upon in support of his complaint made earlier, while considering whether or not to direct an investigation," it said.