Embassy Group Rejects REIT Petition, Calls It ‘Recycled Claim’, Sebi Review Underway

Realty firm Embassy Group has rejected a petition questioning the “fit and proper” status of entities linked to Embassy Office Parks REIT, calling it a “recycled claim” and part of a repeated attempt to target the company and its promoters.

According to a report by ANI, the company said the matter is not new and has been dealt with in earlier legal proceedings involving Embassy-linked entities. It added that similar challenges have been raised in the past and have either been dismissed or withdrawn in earlier cases.

The matter was heard by a Division Bench of Justices R. I. Chagla and Farhan P. Dubash at the Bombay High Court. Sebi informed the court that it is examining the petitioner’s representations and sought six weeks to complete its review. The court accepted the request and scheduled the next hearing for July 29, 2026.

The court also clarified that it has not made any observation on the merits of the allegations and has only taken note of Sebi’s ongoing examination.

Focus on Regulatory Scrutiny

The petition has sought regulatory action under the framework for Real Estate Investment Trusts (REITs) under Sebi, raising questions over the compliance of Embassy Property Developments Private Limited and associated promoters with the “fit and proper” criteria.

The complainant, a unit holder in Embassy Office Parks REIT, has made reference to past criminal proceedings and chargesheets against certain persons, and also Enforcement Directorate action initiated in 2021, and has sought regulatory review on the basis of these issues.

The complainant has further argued that the REIT, which manages assets worth around ₹40,000 crore, as the report states, requires closer regulatory scrutiny regarding compliance with applicable rules.

Embassy Group has denied the allegations and maintained that similar petitions have already been rejected or withdrawn in earlier proceedings. It said repeated filings are aimed at damaging its reputation and reopening settled issues.

The company also noted that earlier legal disputes involving Embassy-linked businesses, including WeWork India, did not succeed in court.

Sebi Examination Continues

Sebi’s counsel informed the court that the regulator is currently reviewing the submissions and will take a decision after completing its assessment.

The respondents in the matter include Sebi, Embassy Office Parks REIT, its management entities, Axis Trustee Services Limited, Embassy Property Developments Private Limited, and senior promoters including Jitendra Mohandas Virwani and Karan Jitendra Virwani.

The matter is scheduled to be heard again after Sebi completes its review.