K Raheja Investment Managers, the manager of Mindspace Business Parks REIT, has agreed to settle allegations of violations related to Real Estate Investment Trust (REIT) Regulations.

The settlement, issued by the Securities and Exchange Board of India (SEBI) on November 28, addresses several alleged infractions. These include errors in calculating the Net Distributable Cash Flows (NDCF) at the Special Purpose Vehicle (SPV) level, as well as incorrect and incomplete disclosures of NDCF in Half Yearly and Annual Reports.

Furthermore, it was observed that the SPV distributed NDCF to the REIT by borrowing funds, despite having negative cash balances. These borrowed funds were subsequently distributed to unit holders.