NCLAT asks DLF to register transfer of shares to investor's legal heirs, imposes cost of Rs 5 lakh

The National Company Law Appellate Tribunal (NCLAT) has directed leading real estate player DLF Ltd to register transfer of 60,000 shares to the legal heirs of one of its deceased shareholders and has imposed a cost of Rs 5 lakh for "harassing the poor investors".

A three-member bench observed that DLF insisted again and again for affidavit and indemnity bond in spite of having a Letter of Administration for succession, and the action by the real estate firm deserved penal action.

"We note that the appellant (DLF) is a listed company in real estate and is very well aware of legal formalities. By insisting affidavit and indemnity bond again and again, in spite of Letter of Administration issued clearly establish that the Appellants (DLF and Rajdhani Investments) are harassing the poor investors," said a three-member NCLAT bench.

It added: "The act of the appellants deserves some penal action. We also note that the respondents are entitled for 60,000 shares as per entitlement on payment of consideration."
"Respondent will make payment of consideration to the appellant company within 15 days from the date of receipt of this order and he shall be entitled to the benefit of the membership from the date of payment, said the NCLAT adding "appellant company (DLF) will transfer/arrange for transfer 60,000 shares to the respondent within 30 days from the date of receipt of payment."