The entities — Agnes Developers Pvt Ltd, Everlast Projects Pvt Ltd, Lincoln Developers Pvt Ltd and Deneb Developers Pvt Ltd — settled the matter “without admitting or denying the findings of fact and conclusions of law”, according to a settlement order.
Indiabulls Real Estate Ltd (IBREL) merged its business with Bengaluru-based Embassy Group. After the merger, Embassy has become the main promoter of IBREL. Later, it changed IBREL to Embassy Developments Ltd.
The case pertains to Sebi’s examination of the consolidated financial statements of IBREL for FY15, FY16, and FY17, wherein the regulator observed a possible layered diversion of funds from Albasta Infrastructure Ltd, a subsidiary of IBREL, to promoter-connected entities.
Subsequently, Sebi conducted an investigation to ascertain if there was diversion, siphoning and misappropriation of funds by IBREL and its wholly owned subsidiary Albasta through conduit entities, including the four applicants, during the period from FY10 to FY17.
Based on the investigation, the applicants allegedly violated the provisions of the Sebi Act and the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
In view of this, a common showcause notice was issued to the entities on November 1, 2023, asking why suitable directions and monetary penalties should not be imposed on them.According to the order, Agnes Developers, Everlast Projects, and Deneb Developers each paid Rs 2.60 crore as a settlement amount, while Lincoln Developers paid Rs 2.69 crore, which included legal costs of Rs 9.12 lakh.
The applicants remitted the settlement amount on April 13, 2026, following which Sebi disposed of the proceedings initiated through the 2023 showcause notice.
“It is hereby ordered that the instant proceedings initiated against the applicants vide Show Cause Notice dated November 1, 2023 is disposed of by this settlement order,” Sebi said.
Settlement applications were filed in January 2024 and were later considered by Sebi’s Internal Committee and High Powered Advisory Committee before being approved by the panel of whole-time members in March 2026.