Tribunal asks DLF to specify fund-requirement plan

The Securities Appellate Tribunal (SAT) Thursday asked realty major DLF to file an affidavit by Nov 3 and specify the purpose for which it wants to use the money it has invested in mutual funds (MF).

The tribunal Nov 5 will decide if DLF should be allowed to redeem its MF holdings after going through the declaration by the company.

The regulator Thursday submitted before the tribunal that the company can be given an interim relief if it gives a detailed proposal for requirement of funds it needs to redeem.

Earlier this month, SEBI banned DLF and six of its executives from the capital markets for three years on charges of misleading investors.

After that, DLF had said in a statement that it had done no wrong nor had any law been violated during the initial public offer or otherwise.

DLF had raised Rs.9,187 crore through the public offer in 2007.

"DLF and its board were guided by, and acted on, the advice of eminent legal advisors, merchant bankers and audit firms while formulating its Offer documents," the statement had said. "DLF will defend itself to the fullest extent against any adverse findings and measures contained in the order passed by SEBI. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future," the company said.

Those prohibited from the markets include chairman K.P Singh, his son and vice-chair Rajiv Singh, daughter and whole-time director Pia Singh. Others barred are managing director T.C. Goyal and senior officials Kameshwar Swarup and Ramesh Sanka.