Hyderabad: Harish Rao Lodges Complaint with SEBI Over Land Dispute in Kancha Gachibowli
He claims that these actions not only breach investor trust but also amount to fraudulent and unfair trade practices under Indian securities law.
Hyderabad: Former Telangana Minister T. Harish Rao has lodged a formal complaint with the Securities and Exchange Board of India (SEBI), accusing the Revanth Reddy-led Telangana government of violating key SEBI regulations by pledging land in Kancha Gachibowli to raise loans while allegedly concealing facts and misleading regulatory authorities.
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Allegations of Misrepresentation and SEBI Violations
In his complaint addressed to the SEBI Chairman, Harish Rao alleged that the government, in coordination with TGIC (Telangana State Government-backed company), hid material facts, submitted misleading reports, and violated multiple SEBI regulations in the process of securing loans by mortgaging land in Kancha Gachibowli.
He claims that these actions not only breach investor trust but also amount to fraudulent and unfair trade practices under Indian securities law.
Key SEBI Regulations Cited in the Complaint
Harish Rao’s detailed complaint outlines violations of several provisions under SEBI and Company law, including:
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003
- Allegation: Concealment and misrepresentation of facts amounts to fraud.
- SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021
- Allegation: False disclosures to SEBI to obtain funding.
- SEBI (Listing Obligations and Disclosure Requirements – LODR) Regulations, 2015
- Allegation: Failure to disclose corporate structure changes and financial data by TGIC.
- SEBI (Merchant Bankers) Regulations, 1992
- Allegation: Intermediaries failed to conduct proper due diligence.
- SEBI Act, 1992 – Section 11(2)(i)
- Allegation: Engaging in deceptive practices and misinformation to SEBI.
- SEBI LODR Regulations, 2015 – Section 4(2)(e)
- Allegation: Lack of full and transparent disclosure to investors.
- Companies Act, 2013 – Sections 13 & 14
- Allegation: Conversion of a private company into a public entity without following due process.
- SEBI Act – Sections 15A & 15HA
- Allegation: Failure to disclose financial condition and debt repayment ability, leading to regulatory violations.
Political Fallout Likely
Harish Rao’s complaint may escalate into a major political and legal issue, especially if SEBI initiates a formal investigation. The matter also raises concerns about transparency in public sector financing, investor protection, and legal compliance in Telangana’s governance under the current administration.
As of now, there has been no official response from the Revanth Reddy government or TGIC. SEBI is yet to issue a statement regarding the complaint.
