Sammaan Capital Clarifies On CBI Probe After Supreme Court Scrutiny On Alleged Irregularities

Sammaan Capital Ltd. on Wednesday clarified that alleged irregularities by the company's former promoter are "unsubstantiated", after the Supreme Court reportedly questioned "friendly approach" by the Central Bureau of Investigation in its probe.

The apex court heard a plea by Citizens Whistle Blower Forum, seeking a probe into alleged irregularities by the NBFC's promoters, including round-tripping of capital, violations of provisions of The Companies Act, and siphoning of funds, as per media reports.

Sammaan Capital said it has no promoter entity and counts marquee investors like BlackRock Inc and Life Insurance Corporation of India as shareholders.

"The erstwhile promoter Sameer Gehlaut had exited the company way back in 2022-23 and does not hold a single share in the company. The allegations contained in the petition have been looked into by all relevant regulators and investigation agencies like RBI, NHB, MCA, SEBI, ED, CBI, EOW etc. and none of the allegations against the company have been substantiated," the statement said.

Gehlaut was a former promoter of Indiabulls Housing Finance Ltd. who has fled the country to London and has acquired various five-star hotels, aircrafts, yachts etc. and therefore a detailed investigation is required in the matter, according to the petition.

The court pulled up the CBI, Ministry of Corporate Affairs, and the Securities and Exchange Board of India (SEBI) for what it viewed as reluctance and inconsistency in pursuing the case. The three-member bench said the agencies’ stance raised concerns about the pace and seriousness of the probe, especially considering the nature of the allegations.

The court also took a serious view of SEBI’s reluctance to act, calling out what it termed “double standards” in its approach to the matter. Granting SEBI jurisdiction to investigate, the bench said there was no reason for the market regulator to delay action in a case that involves alleged financial misdoings and investor harm, reports said.

The Supreme Court has instructed senior officers of the CBI, Enforcement Directorate, the Serious Fraud Investigation Office, and the SEBI to convene a joint meeting within two weeks to "objectively" examine the issues of "irregularities" raised by the petitioner against Sammaan Capital, reports said. 

"We have no objection to this process. Since there is no allegation from any authority against Sammaan Capital, we are fully open to any inquiry the agencies may wish to conduct — once, twice, or even thrice. We have nothing to hide," Mukul Rohatgi, Senior Advocate and counsel for Sammaan Capital, said.

The matter will next be taken up on Dec. 17, by which time we expect full clarity.

Shares settled 12.5% lower at Rs 159.75 apiece on the BSE, compared to a 0.6% advance in the benchmark Sensex. The stock has risen 4% so far this year.