A Division Bench of Justices R I Chagla and Farhan P Dubash granted the Securities and Exchange Board of India (SEBI) six weeks to examine representations submitted by petitioner Chayan Upadhyay regarding the 'fit and proper' status of certain entities and promoters associated with Embassy Office Parks REIT. According to reports from Moneycontrol, Senior Advocate Shiraz Rustomjee, appearing for SEBI, informed the Court that the regulator was already examining the petitioner's representations and sought the extended timeframe to complete the exercise. The Bench accepted SEBI's request and directed that the matter be listed for further directions on July 29, 2026.
Real estate major Embassy Group described the writ petition as a 'recycled claim' and part of a continuing campaign allegedly orchestrated by Sterling & Wilson. As reported by ETLegalWorld, the company stated that the petition filed by Chayan Upadhyay formed part of a 'continuing, orchestrated campaign' aimed at targeting the group and its promoters through what it termed 'repeated and legally untenable proceedings'. Embassy Group maintained that similar challenges concerning Embassy-linked businesses had previously been unsuccessful before multiple judicial forums, including proceedings relating to WeWork India before the Bombay High Court. According to Embassy Group, earlier petitions had been dismissed, costs were imposed in one matter, the bona fides of petitioners were questioned by the Court, another challenge was withdrawn unconditionally, and a related appeal was dismissed by the Supreme Court at the admission stage. The company further contended that the present petition was a 'recycled claim dressed up as a fresh proceeding' despite prior judicial findings and recent amendments to the SEBI REIT Regulations relating to the 'fit and proper' framework.
According to the petition filed by Chayan Upadhyay, who describes himself as a unitholder of Embassy Office Parks REIT, the complainant has sought regulatory scrutiny of whether Embassy Property Developments Private Limited and its promoters satisfy the 'fit and proper person' requirements prescribed under the REIT and Intermediaries Regulations. As reported by Moneycontrol, the petition states that certain entities and individuals associated with the sponsor group have faced criminal proceedings and chargesheets in connection with alleged economic offences, contending that these developments warrant examination by SEBI under the applicable regulatory framework. The petition further claims that multiple representations seeking regulatory action were submitted to the market regulator, but no final decision was communicated, leading to the filing of the present writ petition. The respondents in the petition include SEBI, Embassy Office Parks REIT, Embassy Office Parks Management Services Private Limited, Axis Trustee Services Limited, Embassy Property Developments Private Limited, Jitendra Mohandas Virwani and Karan Jitendra Virwani.
According to the complainant, the concerns raised regarding Virwani are based on facts stated to be available in the public domain and relate to his role in managing a REIT with assets worth approximately ₹40,000 crore. As reported by Moneycontrol, referring to proceedings initiated by the Enforcement Directorate in 2021 against Virwani and Embassy Property Developments Pvt. Ltd., the complainant has sought clarity on whether the applicable regulatory requirements were duly considered and complied with by the regulator. The High Court's order does not record any findings on the merits of the allegations raised in the petition and merely notes SEBI's statement that the representations are under consideration.
