SEBI Clears Unitech's Former Promoters in Fund Route Probe

SEBI has cleared Unitech's former promoters, Sanjay and Ajay Chandra, of allegations regarding funds routed to the Indian securities market using overseas accounts. The investigation from 2006-2008 found no evidence to support claims of fraudulent practices. The proceedings have now been disposed of without any directives.

In a significant development, the Securities and Exchange Board of India (SEBI) on Friday exonerated Unitech's former promoters, Sanjay Chandra and Ajay Chandra, from allegations of financial malpractices in the Indian securities market. The accusations pertained to the purported diversion of funds through overseas bank accounts.

SEBI's suo-moto probe, initiated to determine whether the two Chandra brothers funneled funds into Indian markets contravening Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms, spanned the period from April 2006 to March 2008. In its extensive 25-page order, SEBI concluded there was insufficient evidence to substantiate the claims.

The market regulator also noted that allegations of fund transfers from Unitech to its foreign subsidiary, Unitech Overseas Ltd, and subsequently to related entities, were unproven. Consequently, SEBI decided to dismiss the proceedings against the Chandras, bringing an end to this high-profile investigation.