Delhi HC Directs SEBI to Decide PG Paper’s Plea
Regulator asked to consider representations concerning Skyways Air Services and proposed IPO within two weeks
- Delhi High Court directed SEBI to decide PG Paper’s representations within two weeks.
- PG Paper has raised allegations concerning freight procurement involving Skyways Group entities.
- An EOW FIR was registered in Delhi following the company’s complaint.
- The court clarified that it has not expressed any opinion on the merits of the allegations.
GG News Bureau
New Delhi, 27th Aug: The Delhi High Court has directed the Securities and Exchange Board of India (SEBI) to consider and decide, within two weeks and in accordance with law, representations submitted by PG Paper Company Limited, UK, concerning Skyways Air Services Limited, New Delhi, and its proposed IPO.
The matter relates to allegations raised by PG Paper following an internal review of freight procurement arrangements involving entities of the Skyways Group. According to the company, freight business was allegedly steered towards selected entities, competitive quotations were suppressed, access to alternative providers was restricted and certain supporting documents were allegedly fabricated or forged.
PG Paper has alleged that freight invoices were inflated by around 40% and, in some cases, by as much as 300%. The company has quantified alleged fraudulent over-invoicing at approximately ₹51.98 crore and claimed its total loss, including loss of business opportunities, at around ₹480 crore.
Following PG Paper’s complaint, FIR No. 0172/2025 was registered by the Economic Offences Wing in Delhi. The investigation remains pending. The High Court order also records that Skyways Air’s AEO-LO status was suspended with effect from May 4, 2026, pending the outcome of the FIR investigation.
PG Paper CEO and spokesperson Poonam Gupta said the company welcomed the High Court’s direction and expressed confidence in SEBI and the regulatory process.
She alleged that the company’s concerns went beyond individual invoices and involved the freight procurement process itself, while stating that PG Paper would continue to provide relevant facts and supporting material to the authorities.
The Delhi High Court has directed SEBI to examine the representations and take a decision in accordance with law within two weeks.
The court has also clarified that it has not expressed any opinion on the merits of PG Paper’s allegations or on the company’s locus to make the representations. These issues have been left for consideration by SEBI in accordance with law.
