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The plea seeks the court’s intervention to halt the Initial Public Offer of WeWork India until SEBI decides on the complaint filed against the retail giant
As per the website of the Bombay High Court, the petition was filed before the court on September 30
Just days before its much-awaited IPO launch, WeWork India has found itself in the courtroom instead of the stock market, with a retail investor petitioning the Bombay High Court alleging serious lapses in disclosures and SEBI’s failure to act.
The plea filed by Vinay Bansal, who claims to be a regular retail investor, has sought the court’s direction to the Securities and Exchange Board of India (SEBI) to perform its statutory duty by acting upon the petitioner’s complaints regarding the Draft Red Herring Prospectus (DRHP) of WeWork India.
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It also seeks the court’s intervention to halt the Initial Public Offer (IPO) of WeWork India until SEBI decides on the complaint filed against the retail giant.
“The DRHP contains material non-disclosures and misleading statements, particularly the suppression of the criminal chargesheet filed against the promoters, which poses a significant and undisclosed risk to Respondent No. 2’s (WeWork) business continuity,” the plea contended.
It is further stated that the proposed IPO, being structured entirely as an Offer for Sale by a loss-making entity, does not create any tangible assets for the issuer and is designed primarily to provide an exit to promoters at the expense of retail investors, violating the principles laid down in SEBI’s General Order, 2012.
The plea filed through advocate Akash Menon also alleged that SEBI’s inaction on the complaints filed against WeWork amounts to indirectly conferring upon the issuer a free pass to proceed towards listing on the stock exchange and accessing the securities market, without compliance with the statutory framework.
“…by failing to exercise its regulatory oversight and enforce mandatory disclosure obligations, SEBI is, in effect, permitting WeWork India to bypass the safeguards envisaged under the SEBI Act and the ICDR Regulations, thereby defeating the very object of investor protection and market integrity,” the plea alleges.
The plea further claims that the promoters of WeWork India are embroiled in a series of litigations for corruption and criminal conspiracy charges and, therefore, cannot be entrusted with holding such positions which require the utmost standards of public trust, integrity, and fiduciary responsibility.
“The offices they occupy demand unimpeachable ethical conduct and confidence from the investor community, and the continued association of individuals facing such serious allegations gravely undermines the credibility, transparency, and governance expected in SEBI-regulated entities,” the petition read.
Finally, the petitioner also contends that the criminal proceedings pending against the promoters may also threaten WeWork India’s continued right to use the ‘WeWork’ brand name, which is contractually dependent on the promoters maintaining management and voting control over the entity.
“This compounds the risk faced by investors and reinforces the need for regulatory scrutiny before allowing the IPO to proceed,” it stated.
As per the website of the Bombay High Court, the petition was filed before the court on September 30 and is likely to be listed for hearing before a division bench of the high court after vacations.
When contacted, the WeWork representatives said they would refrain from commenting on the matter since it is sub-judice. “Any matter that is sub-judice will be determined as per the course of law,” WeWork India responded.
About the Author
Ananya Bhatnagar, Correspondent at CNN-News18, reports on various legal issues and cases in lower courts and the Delhi High Court. He has covered the hanging of the Nirbhaya gang-rape convicts, JNU violence, De…Read More
Ananya Bhatnagar, Correspondent at CNN-News18, reports on various legal issues and cases in lower courts and the Delhi High Court. He has covered the hanging of the Nirbhaya gang-rape convicts, JNU violence, De… Read More
October 01, 2025, 13:52 IST
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