DLF board cleared the deal with Robert Vadra-promoted Skylight Hospitality

NEW DELHI: DLF Ltd has said that the company's board of directors had, at its meeting on October 15, 2009, approved the formation of a partnership with Skylight Hospitality- a company promoted by Robert Vadra- including the transfer of the company's hotel property in Saket to the partnership for Rs 150 crore. Out of this, the equity valuation was Rs 70 crore.

In response to the news item, 'DLF independent directors in the dark over Vadra deals', published in ET on October 8 (Click here to read the story), the company's independent directors have objected to the headline saying that incorrectly implies non-performance on their part. "This is far from the truth," the independent directors said in a statement.

The directors were responding to the headline of the story and not its content, which they agreed was correct. The statement said that KN Memani, also chairman of DLF's audit committee, summed up the position on behalf of all independent directors in the said article. "This would imply that they were always aware and involved in the matter to the extent it was required in a listed company keeping in view the interest of large number of small shareholders," said the statement.

Sale transactions of residential apartments fall into the category of day-to-day business, and the audit committee ensures through the scrutiny by internal auditors that the same been done in accordance with the established business practice and as per policies approved by audit committee and board of directors.

KPMG and Deloitte were the companies, at the time fully engaged for internal audit by DLF and through their quarterly presentations to the audit committee, they always bring to the notice any transaction which is not in order, said the statement.