NEW DELHI: Market regulator Sebi announced the settlement of proceedings against four entities involved in an alleged fund diversion case linked to the former Indiabulls Real Estate Ltd (IBREL), with a total settlement of approximately ₹10.49 crore.
The entities—Agnes Developers Pvt Ltd, Everlast Projects Pvt Ltd, Lincoln Developers Pvt Ltd, and Deneb Developers Pvt Ltd—resolved the issue “without admitting or denying the findings of fact and conclusions of law,” as stated in the settlement order.
Following the merger of Indiabulls Real Estate Ltd with Bengaluru’s Embassy Group, Embassy became the primary promoter of IBREL, later rebranding it as Embassy Developments Ltd.
The case arose from Sebi’s review of IBREL’s consolidated financial statements for FY15, FY16, and FY17, where it identified a potential layered diversion of funds from Albasta Infrastructure Ltd, an IBREL subsidiary, to entities linked to the promoters.
Consequently, Sebi launched an investigation to determine if there had been fund diversion, siphoning, or misappropriation by IBREL and its subsidiary Albasta through intermediary entities, including the four involved parties, from FY10 to FY17.
As a result of their findings, the applicants allegedly breached the provisions of the Sebi Act and the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.
A common showcause notice was issued to these entities on November 1, 2023, asking for justifications regarding potential directions and monetary penalties.
According to the order, each of Agnes Developers, Everlast Projects, and Deneb Developers paid ₹2.60 crore, while Lincoln Developers settled for ₹2.69 crore, including legal fees of ₹9.12 lakh.
The settlement amount was paid on April 13, 2026, after which Sebi concluded the proceedings initiated through the 2023 showcause notice.
Sebi stated, “The current proceedings initiated against the applicants via Show Cause Notice dated November 1, 2023, are hereby resolved by this settlement order.”
Settlement applications were initially filed in January 2024 and later reviewed by Sebi’s Internal Committee and High Powered Advisory Committee before approval by the panel of whole-time members in March 2026.
