The third appeal filed by the company became "infructuous" as during the one year ban imposed by the Sebi, a Gammon group company did came out with an initial public offer following a SAT direction.
Apart from Gammon, the Sebi had barred Nikhita Estate Developers, Devyani Estate & Properties and their controller Abhijit Rajan, who is also the chairman-promoter and MD of Gammon India and Gammon India Infrastructure, from selling their stake in Gammon Infrastructure Projects for three years. In Gammon case, Sebi said its investigations found that the promoter Abhijit Rajan was using the company's funds to subscribe to the rights issue. The case came up when RSPL filed a complaint against Gammon India with the Sebi, alleging irregularities in the company's rights issue. It also alleged non-disclosure of financial agreement between the two in the annual account of Gammon, which resulted into "understatement of loss, unauthorised use of banking accounts and overstatement of assets of Gammon subsidiary Nouveau Exports".
