Capital market regulator Sebi has appointed a forensic auditor at TARC Limited to examine the financial statements of the company between years FY21-23, citing that disclosure by the company may have been 'detrimental to the interest of investors'.
Shares of TARC were lower by 10% in early trade on December 17, falling for a seventh day.
Citing the reason for audit, regulator's communication to the company said, "SEBI believes that the disclosure of financial information and business transactions of the Company have been dealt with in a manner which may be detrimental to the interest of investors or the securities markets; and/or an intermediary or a person associated with the securities market."
TARC added to the company filing that it is providing all necessary information as sought by the regulator. "The Company wishes to place on record that it shall provide all necessary information, assistance and cooperation in this regard and shall inform the exchanges of any further developments in the matter," the company said.
The company said 'remains committed' to maintaining highest standards of corporate governance, and all processes are conducted with integrity and transparency.
TARC added that the matter will be addressed 'thoroughly and efficiently', and it sees no impact either financially or operationally on the company's objectives.
"We believe this audit will eventually enhance shareholder trust, as we continue to prioritize transparency, compliance, and accountability in all areas of our business," TARC added.
TARC is one of the largest real estate developer and land bank holders in the New Delhi Metropolitan region, and has been planning a new series of luxury residential projects in the Delhi and Gurugram region, citing strong demand.
The management has previously said that it aims to bring down the debt to zero over next two years, majorly from already-launched projects. "Whatever projects we launch going forward are going to just speed up the whole process," it said during the September quarter earnings call.
In November, the company declared that it had sold 50 percent of project 'TARC Ishva', a luxury residential development in Gurugram, amounting to Rs 1,350 crore.
In January 2024, the Delhi NCR based real estate developer had shared plans of developing a 1.7 million square foot luxury housing project in central-west Delhi, with a top line of Rs 4000 crore.
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