Axis Trustee Faces Sebi Complaint Over Alleged Embassy REIT Disclosure Lapses
Aug 19, 2026
The filing also seeks clarity on how the trustee assessed key persons associated with the listed real estate platform
Axis Trustee Services, trustee of Embassy Office Parks REIT, has been named in a representation filed with the Securities and Exchange Board of India (Sebi) alleging lapses in oversight and disclosure of material criminal proceedings involving the REIT’s sponsor and promoters.
The representation, dated 17 August, 2026, was filed on behalf of an Embassy REIT unitholder through Sigma Chambers. It alleges that Axis Trustee failed to exercise independent oversight over the REIT manager, ensure timely and accurate disclosures, address discrepancies and protect unitholder interests.
A key issue concerns criminal proceedings involving Embassy Property Developments Private Limited (EPDPL), the sponsor of Embassy REIT, and Jitendra Mohandas Virwani. According to the representation, criminal petitions filed by EPDPL and Virwani were withdrawn on January 7, 2022, following which the interim stay on the proceedings stood vacated.
The representation alleges that Embassy REIT continued to carry disclosures indicating that the interim stay was operative in subsequent reports. It says the position continued through the half-yearly report for 2025, while the annual report for 2025 disclosed the withdrawal for the first time, after an unexplained gap of approximately four years.
The unitholder has argued that Axis Trustee should have identified the discrepancy, required corrective action from the manager and informed Sebi of any regulatory breach. The representation also questions whether the trustee independently assessed the fit and proper status of Jitendra Virwani and Karan Jitendra Virwani.
Sebi Order Cited
The representation cites a Sebi order dated 29 April, 2026, under which Axis Trustee was fined Rs 10 lakh in a separate matter concerning former Embassy REIT CEO Arvind Maiya. It cites SEBI’s observation that a trustee has an active and continuous duty to ensure timely disclosures and that its oversight is not a secondary or reactive obligation.
The unitholder has sought show-cause notices and regulatory action against Embassy REIT, its manager Embassy Office Parks and Axis Trustee. It has also sought disclosure of the material considered by Axis Trustee in assessing the fit and proper status of the Virwanis, along with the dates on which it became aware of the proceedings and completed its assessment.
The allegations are contained in a representation submitted to Sebi and do not by themselves establish regulatory wrongdoing by Axis Trustee, Embassy REIT or its manager.