Will Challenge Sebi Order, Says DLF

New Delhi: Slapped with a huge penalty for "fraudulent and unfair trade practices", realty major DLF said on Thursday that it did not violate any law and it will challenge the Securities and Exchange Board of India's order.

DLF further said that the company and its board were guided by and acted on the advice of "eminent legal advisors, merchant bankers and audit firms" while formulating its IPO documents.

The orders passed by Sebi can be challenged before the Securities Appellate Tribunal (SAT), which is already hearing a plea by DLF against another order passed by capital market regulator Sebi in October 2014.

The earlier order is also related to the same case, wherein Sebi had barred DLF and six others from capital markets for three years for "suppression of material facts" in its IPO documents.

"We have been made aware of adjudication orders passed by SEBI under Section 15 of the SEBI Act, 1992 against DLF, its directors and other noticees. We are presently reviewing the said Orders and after taking appropriate legal advice, we will challenge the said Orders in appeal," DLF said in a statement about Thursday's order.

Reassuring investors and all other stakeholders, DLF said "it has not acted in contravention of law either during its initial public offer or otherwise".

"DLF will defend itself to the fullest extent against any adverse findings and measures contained in the Orders passed by SEBI. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future," the company said.

DLF said Sebi had earlier passed an Order dated October 10, 2014 inter alia under Section 11 of the SEBI Act, 1992 against the company DLF and its directors.

In two separate orders, Sebi has slapped fines totaling Rs 52 crore on DLF and seven others, while penalties worth Rs 34 crore have been imposed on 33 others including family members of DLF promoters and executives as also various related entities.