SEBI v. Agnes Developers Private Limited and others (alleged fund diversion at Indiabulls Real Estate, settlement, 2026)

Settled

✓ Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In May 2026 SEBI settled proceedings against four conduit companies accused of helping divert funds from a subsidiary of Indiabulls Real Estate to promoter-connected entities, on payment of about Rs 10.49 crore in total and without any admission or denial. The settlement disposed of a show cause notice alleging fraud under the PFUTP Regulations.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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Penalty as published

105m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The order of 7 May 2026, signed by a SEBI quasi-judicial authority, settles proceedings in the matter of Indiabulls Real Estate Limited. The four applicants are Agnes Developers Private Limited (recorded as merged into Ignacio Developers), Everlast Projects Private Limited, Lincoln Developers Private Limited (with several former names and an amalgamation) and Deneb Developers Private Limited.

SEBI had examined the consolidated financial statements of Indiabulls Real Estate for three financial years from 2014-15 and observed a possible layered diversion of funds from its subsidiary Albasta Infrastructure Limited to promoter-connected entities. Its investigation, covering 2009-10 to 2016-17, asked whether funds were diverted or misappropriated by lending to promoter-connected entities through the four applicants acting as conduits.

A show cause notice of 1 November 2023 alleged that the applicants had violated section 12A(b) and (c) of the SEBI Act with Regulations 3(c), 3(d) and 4(1) of the PFUTP Regulations, and asked why monetary penalties should not be imposed. These were allegations only; the settlement order makes no findings.

All four applied to settle on 3 January 2024 under the 2018 settlement regulations, neither admitting nor denying the findings of fact or conclusions of law. After internal committee meetings in December 2025 and a recommendation of the High Powered Advisory Committee in January 2026, the panel of whole time members approved the terms on 12 March 2026.

The settlement amounts were Rs 2.60 crore each for Agnes, Everlast and Deneb, and Rs 2,69,12,000 for Lincoln, which includes Rs 9,12,000 as legal costs. The total is Rs 10,49,12,000, which the applicants paid on 13 April 2026. The order disposes of the proceedings under the show cause notice, with SEBI keeping the right to restore enforcement if representations prove untrue, undertakings are breached, or the terms were miscalculated.

The record does not show the size of the funds said to have been diverted, what happened to Indiabulls Real Estate itself, whether other noticees were treated differently, or any criminal case. Because this is a settlement, it contains no finding that the applicants committed fraud.

This library applies no technique tag to the matter, because the order is a settlement of alleged fund diversion, which fits none of the library's manipulation techniques. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

Timeline

1. 2026-05-07 SEBI settlement order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Record added October 8, 2026. submit a correction.