Land used as collateral without corporate approval triggers SEBI action

The Securities regulator uncovered that GEEEL’s Hyderabad property was pledged as security for a INR 726 crore loan taken by four Ascel Group companies, including Acel Home Private Ltd. The pledge was executed without any board or shareholder clearance, breaching the LODR and PFUTP rules.

SEBI’s findings indicated that the loan was originally sourced from India Bulls Housing Finance Ltd (IHF) in December 2016. When the borrowing entities failed to provide additional collateral, IHF issued a notice in November 2018, leading GEEEL to submit a declaration and acknowledgment on 27 December 2018.

The regulator concluded that the transaction qualified as a related‑party deal that required prior approval and public disclosure, which were absent.