SEBI Indicates Its Stand May Not Support Petitioners' Claims in Embassy REIT Matters; Bombay HC Seeks Detailed Affidavits
Mumbai, July 30
The Bombay High Court has granted Securities and Exchange Board of India time to file detailed affidavits in two writ petitions concerning allegations against the Sponsor and promoters of Embassy Office Parks REIT.
During the hearing, SEBI informed the Court that it had already examined the representation forming the basis of the first petition, arrived at a decision, and would place its reasons on record through a reasoned affidavit. The regulator also indicated that its decision was unlikely to support the relief sought by the petitioner.
Appearing for SEBI, Senior Advocate Shiraz Rustomjee submitted that the regulator had already taken a decision on the representation forming the basis of the first writ petition filed by Chayan Upadhyay.
He stated that SEBI would explain the basis of its decision in an affidavit to be filed before the Court.
With regard to the second writ petition filed by Shashank Garg, SEBI submitted that it raised issues substantially similar to those involved in the earlier petition.
However, the regulator stated that it was nevertheless required to independently examine every fresh representation, obtain inputs from the concerned departments, and determine whether any regulatory action was warranted before placing its final stand before the Court.
SEBI also submitted that amendments to the regulatory framework governing the "fit and proper person" criteria may have a bearing on the issues raised in the first petition.
According to the regulator, the petition relied on provisions that have since been amended, and this aspect would also be addressed in its affidavit.
The High Court observed that SEBI's position could not be conveyed merely through an internal communication or report and directed the regulator to file a reasoned affidavit setting out the basis of its decision.
During the hearing, reference was also made to the second petition, which states that the petitioner had begun submitting representations to SEBI in September 2025, while it also indicates that he acquired units of Embassy Office Parks REIT in December 2025.
A Division Bench of Justice R.I. Chagla and Justice Farhan Dubash directed SEBI to file its affidavits in both matters by August 27, 2026. The petitioners have been granted time until September 4, 2026 to file their rejoinders, while other respondents may also file their replies within the same period. The matters have been listed for further hearing on September 9, 2026, at 1:00 p.m.
The petitions concern allegations relating to the Sponsor and promoters of Embassy Office Parks REIT and seek directions for regulatory action under the SEBI framework governing Real Estate Investment Trusts. The Court will consider SEBI's affidavits and the parties' responses at the next date of hearing.
— ANI
Reader Comments
This seems technical but important. Large investors like HDFC and SBI Mutual Fund have significant holdings in Embassy REIT. The fact that SEBI is backtracking on the original petition is concerning—are they protecting big corporate interests? Glad the HC is pushing for detailed reasoning.
Honestly, the timing of the second petition (December 2025) while representations started in September raises eyebrows. Seems like someone bought units specifically to file a complaint. But that doesn't change the merit of the allegations. SEBI needs to act firmly against sponsors if rules were violated.
The Bombay High Court is doing its job well by not accepting SEBI's verbal stance at face value. A reasoned affidavit is essential for public confidence. SEBI's hint that it may not support the petitioners is a blow to retail investors who trusted the regulatory framework. 🤔
Interesting case. As someone who follows Indian real estate, REIT governance is a work in progress. The amended "fit and proper" criteria could change the game. But I wonder if SEBI is being too lenient on the sponsors. Let the affidavits reveal the truth.
SEBI must be independent and not be influenced by corporate lobbying. The new provisions about "fit and proper" should be applied strictly to all sponsors. Investors trust REITs for stable returns—any breach of trust hurts the entire market. Good that the court is overseeing this carefully.
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