Small investors file complaint against DLF

New Delhi, Jun 7 (UNI) Acting on the directions of the Delhi High Court, small investors have approached the Secretary to the Ministry of Company Affairs to investigate the affairs of DLF company for their alleged irregularities relating to fradulent and unfair trade practices related to securities market.

A civil writ petition in the form of a public interest litigation was filed by the Society for Consumers and Investors in the Delhi High Court seeking directions to the Government of India and the Ministry of Company Affairs as well as to SEBI to institute an investigation against DLF company's affairs for fraudulently buying back shares of small investors.

A bench comprising Justice T S Thakur and Justice S N Aggarwal, on May 15, had directed the society to submit the complaint to the Secretary to the Ministry of Company Affairs within two weeks for examination and appropriate action in accordance with law.

The court observed, ''We make it clear that in case any issue is raised by the society relating to SEBI or the Government we would like SEBI to examine the same in terms of statute that governs its functioning,it shall be free to make reference to SEBI." The court categorically said, '' The complaint shall be dealt with expeditiously but not later than two months from today under initiation to the petitioner society. The society and the aggrieved investors shall be free to seek appropriate redress in accordance with law against the said decision.'' The court observed, ''We make it clear that nothing said in their order shall be construed as expression of any opinion by this court about merits of any issues raised by the parties or the proposed Initial Public Offering(IPO) of the company.'' The society had approached the Delhi High Court, saying more than 50 small investors have approached them seeking redress agaist the company's alleged insider trading and buying back of shares from them.

According to B R Sachdeva, counsel for the society, the primary grievance of the shareholders is that they made individual complaints to the Government as well as to SEBI but no response was evoked from them.

According to Mr Arun Jaitley, counsel for DLF company, the purpose behind filing this petition is to obstruct the public issue of the company which is coming up very soon and discredit the same in the eyes of the investors.

SEBI's counsel Anand Singh said the market regulator has no jurisdiction over the complaints as the company was unlisted from SEBI during the period to which complaints relate.

The court observed since there are nearly 50 complaints,it would be difficult and cumbersome for the government to address each one of them. ''The complaints of the investors can, in our opinion, be consolidated in a single comprehensive complaint which the society may draw up for consideration of the Goverment,'' the court added.

UNI