SEBI told the Bombay High Court that pending criminal proceedings alone did not warrant disqualification under the amended ‘fit and proper’ framework. The regulator also identified a disclosure lapse and issued advisory letters to the Embassy REIT Manager and Trustee.
SEBI has informed the Bombay High Court that its examination of complaints concerning the “fit and proper” status of persons associated with Embassy Office Parks REIT was completed under the regulatory framework amended on April 16, 2026. SEBI stated that the material examined did not establish grounds for disqualification under the amended provisions. Securities and Exchange Board of India
The matter involves criminal proceedings and disclosure-related allegations concerning Jitendra Virwani and Karan Virwani. SEBI noted that the pending CBI, ED and Economic Offences Wing proceedings had not resulted in convictions and, by themselves, did not establish a lack of integrity.
SEBI also acknowledged a disclosure lapse concerning an EOW chargesheet, stating that Embassy REIT’s financial statements did not specifically identify the two individuals. The regulator subsequently issued advisory letters to the Manager and Trustee on July 29, 2026, requiring compliance with applicable disclosure requirements.
SEBI further maintained that the April 2026 amendments to Schedule II of the SEBI (Intermediaries) Regulations, 2008 were part of a general regulatory process and were not introduced specifically for the Embassy REIT matter. The regulator has also opposed disclosure of its internal regulatory records sought by the petitioners. CASansaar