SAT dismisses intervention petition in DLF appeal

Dismisses intervention petition, matter to be heard on Thursday

The Securities Appellate Tribunal (SAT) dismissed on Wednesday an application by Kimsuk Krishna Sinha to be made a part of the appeal proceedings of real estate major DLF. The company was appealing against a regulatory order barring it from the securities market.

Sinha sought to be made a part of the appeal against the order, saying he was not heard by the Securities and Exchange Board of India (Sebi), the market regulator, despite making the complaint which led to the order. Sebi had barred the company and its officials from the securities market in relation to disclosures made during the time of its Initial Public Offer (IPO).

The disclosure was in relation to a complaint by Sinha, alleging that a DLF subsidiary had been involved in a land deal in which Sinha was allegedly duped of around Rs 34 crore. Sebi passed an order against DLF saying this complaint was not disclosed to investors at the time of its Rs 9,187-crore IPO.

Janak Dwarkadas, senior advocate appearing on behalf of DLF, said intervention application should not be allowed; and that such interventions should only be if a broader investor concern is being addressed. The counsel said allowing an intervention would only support Sinha's cause and not that of any investor.

Sinha has petitions related to the money he lost, pending in various judicial forums.

Rafique Dada, senior advocate who appeared on behalf of Sebi, said a petition in the Delhi High Court alleges that Sebi is "hand-in-glove" with DLF.

In light of the allegation, Sebi does not wish to oppose the application, though it does not support it either.

Amit Sibal appeared on behalf of Sinha. He said a person making the complaint has a right to be heard irrespective of whether or not the entity under investigation is exonerated.

SAT declined to allow the intervention. The matter will now be heard on Thursday.