Brookprop Management Services, the manager of Brookfield India Real Estate Investment Trust (REIT), has settled a case with the Securities and Exchange Board of India (SEBI) concerning alleged violations of REIT norms. The settlement was completed through a payment of ₹20.47 lakh, according to SEBI’s order issued.
The regulatory proceedings had been initiated following a show-cause notice issued to Brookprop on June 11, 2024. SEBI had alleged that the entity had used borrowed funds to facilitate the distribution of Net Distributable Cash Flow (NDCF) to unitholders, which contravenes REIT regulations. The notice outlined the potential breach and sought responses from the management.
Brookprop opted to resolve the matter under SEBI’s settlement regulations. The company submitted an application seeking disposal of the proceedings without admitting or denying the findings of fact or conclusions of law. In its order, SEBI confirmed the acceptance of the settlement terms and noted that, upon receipt of the settlement amount, the adjudication proceedings were formally disposed of.
This settlement allows Brookprop to conclude the regulatory review efficiently while ensuring compliance with the framework governing REIT operations in India. SEBI’s settlement mechanism is designed to provide entities a way to resolve disputes without prolonged litigation, provided the applicant complies with the stipulated financial and procedural conditions.
Brookprop’s REIT portfolio includes commercial office assets leased to leading corporate tenants in major Indian cities. The settlement is expected to have limited operational impact on the REIT, as it pertains solely to financial and procedural compliance rather than property management or lease obligations. Analysts note that REITs are under increasing regulatory scrutiny to ensure transparency in fund flows, distribution of income, and adherence to borrowing limits.
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