DLF denies allegation of material non-disclosure in offer documents; shares tank 16 pc

Realty major DLF on Thursday dismissed as "misconceived" allegations of material non-disclosure in offer documents filed with the market regulator in 2013 and 2019.

The submission to the stock exchanges came after bourses sought clarification on a report that the Supreme Court has served notice to the company on alleged non-disclosure of key information during the time of qualified institutional placement (QIP) earlier this year.

Shares of DLF plunged nearly 16 per cent to Rs 144.30 on the BSE on Thursday following the report.

In a regulatory filing, DLF said the Supreme Court had issued notice on July 22 on an application filed by a complainant in an appeal which was filed in 2015.

"A fresh application was filed by the complainant in the pending appeals before the Supreme Court in May 2019 alleging that certain ongoing land litigation before the Supreme Court should have been disclosed as a part of the RHP (2013) & Placement Document (2019). DLF firmly denies this allegation," the realty firm said.

DLF said it had disclosed all material litigations pertaining to entities of the group, including the pending appeals filed by SEBI and the complainant before the apex court.

The on-going land litigation, even otherwise, did not satisfy the materiality threshold for such disclosure, it added.

"Therefore, the allegation in the application that there was a material non-disclosure in the RHP (2013) and / or Placement Document (2019) is misconceived and untenable," the filing said.

DLF said it will file a reply to the Supreme Court notice in due course and is confident that its position will stand fully vindicated.