The Bombay High Court has granted 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 reports from The Hindu BusinessLine and ETLegalWorld, during the hearing, SEBI informed the Court that it had already 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. 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 comprehensive affidavit setting out the basis of its decision.
SEBI indicated that its decision was unlikely to support the relief sought by the petitioner. As reported by The Hindu BusinessLine and ETLegalWorld, Senior Advocate Shiraz Rustomjee, appearing for SEBI, submitted that the regulator had already taken a decision on the representation forming the basis of the first writ petition filed by Chayan Upadhyay. The regulator stated that it was 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.
Embassy Group stated that SEBI's submission before the Bombay High Court has significantly weakened allegations brought against the REIT's sponsor and promoters by Sterling & Wilson and other petitioners. According to The Financial Express, Embassy alleged that the petitions were part of a coordinated attempt to recycle substantially similar charges across different forums after no substantive finding had been secured against it. The company questioned the bona fides of a petitioner who began submitting complaints in September 2025 but acquired 10 units of the REIT only in December, with a spokesperson noting that "this chronology raises serious questions" about whether the investment was made to establish standing for further litigation.
SEBI submitted 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 the regulator, as reported by The Hindu BusinessLine and ETLegalWorld, the petition relied on provisions that have since been amended, and this aspect would also be addressed in its affidavit. With regard to the second writ petition filed by Shashank Garg, SEBI stated that it raised issues substantially similar to those involved in the earlier petition. Embassy also argued that amendments to SEBI's Intermediaries Regulations and provisions allowing administrative withdrawal of proceedings affected by the changes supported its position that the allegations lacked a sustainable regulatory basis.
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. As reported by The Hindu BusinessLine and ETLegalWorld, 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.. Embassy stated that its record on governance, transparency and performance since the REIT's listing stood in contrast to the allegations being made against it.
