In 2019, a whistleblower forum filed a Public Interest Litigation before the Delhi High Court, alleging irregularities in the lending practices of Sammaan Capital involving loans to five borrower group companies, and alleging quid pro quo between the five borrower groups and the erstwhile promoter Sameer Gehlaut.
The Apex Court pulled up both the CBI and the Ministry of Corporate Affairs for what it described as an unusually “friendly approach” in examining the allegations. The bench also questioned Sebi’s reluctance to take up the probe, pointing to “double standards” even though the regulator had earlier been given jurisdiction by the court to investigate the matter, a CNBC TV-18 report stated. The stock ended 17% lower on November 19, following the development.
However, the company has now issued a clarification. Sammaan Capital clarified that no investigative agency or regulatory body—including the CBI, ED, EOW, RBI, NHB, SEBI, MCA or SFIO—has any ongoing inquiry related to the allegations raised in the PIL. During the hearing, the Supreme Court noted that none of the affidavits filed by these authorities indicated any wrongdoing by the company and explicitly stated, “We have not expressed any opinion against Sammaan Capital Limited.”
The court’s direction provides the company with a clear path to move forward and distance itself from allegations linked to its erstwhile promoter, it said in a regulatory filing on November 19.
The case now focuses solely on the erstwhile promoter and any alleged quid pro quo between him and the five borrower groups in connection with loans extended during his tenure as promoter and Executive Chairman. All five loan accounts currently stand at nil, with most fully repaid as far back as 2019. Sammaan Capital reiterated that it is a law-abiding organisation and will fully cooperate to ensure the required affidavit is filed within the stipulated timeframe.Also read | Nvidia’s blowout earnings ignite global tech stocks. What it means for D-Street investorsAt about 11:30 AM, shares of the company were trading at Rs 164, higher by 3% from the last close on the NSE. Sammaan Capital shares are up 35% on a YTD basis.
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