Supreme Court Directs SEBI Inquiry into Rs. 371 Crore Transfer in Corporate Dispute.


08 October 2025 Civil Appeals >> Civil & Consumer Law  

On 8 October 2025, the Supreme Court of India ordered the Securities and Exchange Board of India (SEBI) to inquire into allegations of financial irregularities of over Rs. 371 crore in a case involving Akkadian Housing and Infrastructural Pvt. Ltd. and Pantheon Infrastructure Pvt. Ltd.

The case arose out of Civil Appeal No. 633 of 2016, wherein the Court had previously, on 18 January 2016, granted leave and imposed interim orders. It then directed the appellants not to transfer their shares in Akkadian Housing and Infrastructural Pvt. Ltd., but permit them or their nominees to be present in company meetings as guests. The controversy basically revolves around control and management of Pantheon Infrastructure Pvt. Ltd., which is said to be a joint venture between the appellant company and some private respondents.


 

 

Allegations of Fund Diversion:

In Contempt Petition No. 598 of 2022, the appellants were complaining that the respondents had, in violation of the Court's interim order, transferred Rs. 371 crore between 2019 and 2021 from Pantheon Infrastructure to Megha Eco Green LLP (MEG). MEG is said to be owned by second respondent Shobhit Rajan and his son, Yuvraj Shobhit Rajan. The petition further claims that further sums were withdrawn under dubious circumstances, purportedly without notice or involving the appellants, and for personal enrichment at the expense of the subject company.

Stand of Respondents:

Mr. Shobhit Rajan insisted that the transactions with MEG form part of a joint venture to benefit Pantheon Infrastructure and advance its interests.

Role of SEBI:

Although SEBI would generally not have any regulatory control over unlisted private firms, the Court noted that its legislative experience in analyzing complicated financial issues qualifies it to pursue this case. Hence, SEBI was entrusted with examining the charges and respondents' denials, ascertaining genuineness and bona fides of transactions, and specially looking into the Rs. 371 crore amount being transferred to MEG.

The Court authorised SEBI’s officers to requisition records from the parties and inspect the subject company’s documents. The Registry was directed to transmit the order, along with complete case records, to the Executive Director, Investigation Department of SEBI. The expenses incurred in the investigation will be borne by Pantheon Infrastructure Pvt. Ltd.

Next Steps:

SEBI shall file its report within eight weeks. The case is to be taken up for further consideration on 17 December 2025, and will continue to be on the Court's calendar. The Court made it clear that no findings have as yet been made on the merits of the contempt petition.

In an accompanying interlocutory application, notice was served with a six-week period to reply. The appellants' counsel affirmed that they have abided by the 2016 order by not transferring or pledging their shares, affirmation which has been taken on record by the Court