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, according to a July 30 report. During the hearing, SEBI informed the court that it had examined the representation forming the basis of the first petition, arrived at a decision, and would place its reasons on record through a reasoned affidavit.
SEBI's Position and Court Direction
Appearing for SEBI, Senior Advocate Shiraz Rustomjee submitted that the regulator had already taken a decision on the representation forming the basis of the first writ petition filed by Chayan Upadhyay. Rustomjee stated that SEBI would explain the basis of its decision in an affidavit to be filed before the court. The regulator indicated that its decision was unlikely to support the relief sought by the petitioner.
The High Court observed that SEBI's position could not be conveyed merely through an internal communication or report and directed the regulator to file a reasoned affidavit setting out the basis of its decision. The court also noted that amendments to the regulatory framework governing the "fit and proper person" criteria may have a bearing on the issues raised in the first petition. According to SEBI, the petition relied on provisions that have since been amended, and this aspect would also be addressed in its affidavit.
Second Petition and Timeline
With regard to the second writ petition filed by Shashank Garg, SEBI submitted that it raised issues substantially similar to those involved in the earlier petition. However, the regulator stated that it was nevertheless required to independently examine every fresh representation, obtain inputs from the concerned departments, and determine whether any regulatory action was warranted before placing its final stand before the court. The second petition indicates that Garg began submitting representations to SEBI in September 2025 and acquired units of Embassy Office Parks REIT in December 2025.
A Division Bench of 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 granted time until September 4, 2026 to file their rejoinders, while other respondents may also file their replies within the same period. The matters have been listed for further hearing on September 9, 2026, at 1:00 p.m.
| Event | Date |
|---|---|
| SEBI to file reasoned affidavits | August 27, 2026 |
| Petitioners and respondents to file rejoinders/replies | September 4, 2026 |
| Next hearing before Bombay High Court | September 9, 2026, 1:00 p.m. |
Implications for the REIT Framework
The petitions concern allegations relating to the Sponsor and promoters of Embassy Office Parks REIT and seek directions for regulatory action under the SEBI (Real Estate Investment Trusts) Regulations. The court will consider SEBI's affidavits and the parties' responses at the next date of hearing. The outcome of this case could clarify the application of the "fit and proper person" criteria for REIT sponsors and promoters, as well as the procedural obligations of SEBI when examining investor representations. For market participants, the case underscores the importance of regulatory compliance and the potential for investor-led challenges to influence governance standards in the REIT sector.
Sources:
