Market regulator Sebi today said it will probe allegations by a Delhi-based businessman that he was duped of Rs 34 crore by DLF Limited and Sudipti Estates.

The probe order follows a Delhi High Court ruling on a complaint filed by Kimsuk Krishna Sinha in 2007 against the DLF Group and Sudipti Estates.

"The Securities and Exchange Board of India (Sebi) shall investigate into the allegations levelled by the complainant, Kimsuk Krishna Sinha in respect of DLF Limited and Sudipti Estates Private Limited," the market regulator said.

The Delhi High Court had in July directed the regulator to look into the complaint and pass an order within three months.

Sebi said that the investigations would focus on the violations, if any, of the provisions of the erstwhile Sebi (Disclosure and Investor Protection) Guidelines, 2000 by the companies.

"A formal order would be issued appointing Investigating Authority...If any violations are brought out in the investigation, the Sebi shall proceed in accordance with law," it said.

In the FIR lodged against Sudipti in Delhi, Sinha had alleged that the company and its directors/agents had "lured and compelled" him to transfer certain plots of land and did not fulfill the promise of developing the land and providing him higher returns.

DLF, however, has maintained that Sudipti is a separate legal entity owned and controlled by different individuals.

However, Sinha had alleged that Sudipti, DLF Home Developers Limited and DLF Estate Developers Limited were sister concerns, inextricably linked and were part of the DLF Group.

DLF Ltd in a DRHP filed for a public issue in May 2006 had mentioned that Sudipti was its associate company. However, the DRHP was withdrawn and thereafter, it filed fresh a prospectus in January 2007, wherein Sudipti was not mentioned as an associate. (PTI)