Mumbai: The Bombay High Court has granted the Securities and Exchange Board of India (SEBI) 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 told the court that its decision on the representation underlying one of the petitions was unlikely to support the relief sought by the petitioner.
SEBI to Explain Decision on Embassy REIT Petition
Senior Advocate Shiraz Rustomjee, appearing for SEBI, informed the court that the regulator had already examined the representation forming the basis of the first writ petition filed by Chayan Upadhyay.
SEBI has said it will place the reasons for its decision before the court through a detailed and reasoned affidavit. The regulator indicated that its position was not expected to favour the relief sought by the petitioner.
The High Court observed that SEBI’s position should be formally placed on record rather than being conveyed only through an internal communication or report. It therefore directed the regulator to explain the basis of its decision in an affidavit.
Second Petition Raises Similar Issues
The second writ petition, filed by Shashank Garg, also concerns issues substantially similar to those raised in the earlier matter.
SEBI told the court that despite the similarity between the two petitions, every fresh representation has to be examined independently. The regulator said it must obtain inputs from the relevant departments and determine whether any regulatory action is warranted before placing its final position before the court.
Changes to ‘Fit and Proper Person’ Rules Also Raised
During the hearing, SEBI also pointed to amendments made to the regulatory framework governing the criteria for determining a “fit and proper person”.
According to the regulator, the first petition relies on provisions that have since been amended. SEBI said this aspect would also be addressed in the detailed affidavit to be filed before the High Court.
Embassy Office Parks REIT Petitions Before Bombay High Court
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 second petition states that the petitioner began submitting representations to SEBI in September 2025. It also indicates that the petitioner acquired units of Embassy Office Parks REIT in December 2025.
Bombay HC Sets September 9 for Further Hearing
A Division Bench comprising 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 given time until September 4, 2026 to file their rejoinders. Other respondents may also submit their replies within the same period.
The matters will next be heard on September 9, 2026, at 1:00 p.m. The court is expected to consider SEBI’s affidavits and the responses of the parties at the next hearing.
