MUMBAI: Embassy Group, a leading real estate company, has characterized a recent writ petition questioning the “fit and proper” status of certain entities and promoters linked to Embassy Office Parks REIT as a “recycled claim.” This allegation is reportedly part of a persistent campaign orchestrated by Sterling & Wilson. The Bombay High Court has allowed the Securities and Exchange Board of India (SEBI) six weeks to review the representations made by the petitioner.
In a statement following the hearing, Embassy Group claimed the petition filed by Chayan Upadhyay is part of a “continuing, orchestrated campaign” targeting the group and its promoters through what they describe as “repeated and legally untenable proceedings.”
The company noted that similar challenges related to Embassy’s businesses have previously been dismissed by various judicial forums, including cases pertaining to WeWork India before the Bombay High Court.
Embassy Group emphasized that earlier petitions had been rejected, with one case imposing costs, questioning the bona fides of the petitioners, and another challenge being unconditionally withdrawn. A related appeal was also dismissed by the Supreme Court at the admission level.
Furthermore, the group stated that the current petition represents a “recycled claim dressed up as a fresh proceeding” despite previous judicial determinations and recent amendments to the SEBI REIT Regulations concerning the “fit and proper” criteria. The company alleges that the ongoing proceedings aim to damage the reputation of Embassy Group, Embassy REIT, and WeWork India.
This response followed a Division Bench of Justices R I Chagla and Farhan P Dubash, which noted SEBI’s statement indicating it is evaluating the representations submitted by petitioner Chayan Upadhyay about whether respondents, including Embassy Property Developments Pvt Ltd and its Directors, meet the “fit and proper person” criteria under the SEBI (Real Estate Investment Trusts) Regulations, 2014, in conjunction with Schedule II of the SEBI (Intermediaries) Regulations.
Senior Advocate Shiraz Rustomjee, representing SEBI, informed the Court about the ongoing examination of the petitioner’s claims, requesting six weeks to complete this process. The Bench granted SEBI this time and scheduled the next hearing for July 29, 2026.
The High Court’s order does not address the merit of the allegations but merely acknowledges SEBI’s statement regarding the ongoing review of the representations.
The petition lists SEBI, Embassy Office Parks REIT, Embassy Office Parks Management Services Private Limited, Axis Trustee Services Limited, Embassy Property Developments Private Limited, and Jitendra Mohandas Virwani Karan Jitendra Virwani as respondents.
Chayan Upadhyay, the petitioner and a unitholder of Embassy Office Parks REIT, has requested regulatory scrutiny regarding whether Embassy Property Developments Private Limited and its promoters satisfy the “fit and proper person” criteria mandated under the REIT and Intermediaries Regulations.
The petition alleges that certain entities and individuals in the sponsor group have been involved in criminal proceedings and charges related to economic offenses, which warrant SEBI’s examination under applicable regulations. It also claims that several prior representations seeking regulatory action were submitted to SEBI without any conclusive response, prompting the current writ petition.
Furthermore, the petitioner raises concerns about Virwani based on publicly available facts and his management of a REIT with assets valued at approximately ₹40,000 crore. He has sought clarification on whether the relevant regulatory criteria were adequately considered and followed by the regulator in conjunction with proceedings initiated by the Enforcement Directorate against Virwani and Embassy Property Developments Pvt. Ltd. in 2021.
Senior advocate Birendra Saraf represented the petitioner, while Shiraz Rustomjee represented SEBI, with other respondents having separate counsel. The matter is set to be reviewed again on July 29, following SEBI’s examination of the representations.
