Unitech promoters cleared by SEBI in UBS fund transfer probe

The Securities and Exchange Board of India (SEBI) on Friday disposed of its investigation against Unitech’s erstwhile promoters, Sanjay Chandra and Ajay Chandra, in a matter related to the routing of funds to the Indian securities market using overseas bank accounts with UBS AG.

SEBI conducted a suo-moto investigation from April 1, 2006, to March 31, 2008.

This was to ascertain whether the Chandra brothers had transferred the funds from Unitech to Unitech Overseas and then transferred them to its other foreign subsidiaries using UBS accounts. And whether these funds were routed from UBS accounts to Pluri Emerging Companies, a Mauritius-based company, which were then used to buy the shares of Unitech, directly or indirectly, through funds like Sophia Growth Fund and Deutsch Bank Mauritius.

The Friday circular noted that the investment by Pluri in the scrip of Unitech, either through Sophia or through DBML, happened much before the transfer of funds of $8 milion from Unitech to Unitech Overseas.

It said there is no detail or evidence on record regarding fund transactions from Unitech or its subsidiaries to United Corporate Parks or its subsidiaries, as alleged in the show cause notice issued on May 3, 2023.