Meet the man who exposed construction major DLF's irregularities

The Jantar Mantar office of real estate giant DLF Ltd was deserted on Thursday. This is the office of same DLF that once was the official sponsor of cash rich Indian Premier League (IPL) but the company's present condition is in tatters and its future in dark as the company's share are crashing.

The company and its officials are to be blamed for its poor condition. The SEBI on Tuesday banned construction major and some of its executives from accessing capital markets for three years, citing non-disclosure violations related to its 2007 initial public offering.

The ban has effected investors as Rs 7,300 crore of investors' wealth with its market cap now at Rs 18,702 crore, came down from Rs 26,141 crore as of Monday's close. The stock crashed at 29 per cent.

But, the person responsible for exposing DLF's misconduct is Kimsuk Krishna Sinha, a Delhi-based industrialist. Not, a single DLF employee would want to utter Sinha's name for he is the one who complained to SEBI about DLF's irregularities.

Sinha is director of Gobinda Tea Trading and Kirti Infrastructures.

The case, in which Sebi has imposed a three-year ban, DLF's chairman KP Singh and company's six executive officers from accessing capital markets, relates to non-disclosure of these transactions and the related risks when DLF raised Rs 9,187.5 crore through an IPO, the largest in the country at that time.

The company has denied having violated any laws and has said it would defend itself against all adverse findings in the order.

According to the market regulator, SEBI, DLF has not only violated the disclosure related rules but even more.

As per Surendra Gambhir, an expert of corporate affairs, share holders and other responsible citizens should take lesson from Sinha and provide valid evidence to help SEBI in taking actions against firms, who are action against public's interests. Gambhir feels country needs more men like Sinha.

As per experts of real estate, SEBI's action against DLF will send negativity in the construction sector. They fear that DLF's case will send a signal amongst people that if a reputed firm like DLF lacks transparency then how will a common man trust other brands.

Earlier, the market regulator SEBI had taken tough actions against another top company Sahara Group.

OneIndia News