Shares of DLF fell by over 4 per cent on the bourses today after

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market regulator Sebi said it will probe allegations by a Delhi-based businessman that he was duped of Rs 34 crore by the realty major and Sudipti Estates.

"The Securities and Exchange Board of India (Sebi) shall investigate the allegations levelled by the complainant, Kimsuk Krishna Sinha, in respect of DLF Limited and Sudipti Estates Private Limited," the market regulator said yesterday.

Reacting to the development, shares of DLF opened at Rs 224.25, then tanked by as much as 4.30 per cent to an early low of Rs 221.25 on the BSE.

Similar movement was witnessed on the National Stock Exchange, where the stock plunged by more than 3.59 per cent to a low of Rs 222.30.

DLF was later trading 1.38 per cent lower on the BSE, at Rs 228, and down 1.17 per cent at Rs 227.90 on the NSE at 1130 hours.

The downtrend in the counter assumes significance as the broader market was trading in positive terrain. The Sensex was quoted at 17,002.04 points, up 65.15 points, and the wide-based Nifty was at 5,107.10, 15.20 points higher, at 1134 hours.

In a draft red herring prospectus (DRHP) filed for a public issue in May, 2006, DLF had mentioned Sudipti as its associate company. However, the DRHP was later withdrawn and thereafter, it filed fresh a prospectus in January, 2007, wherein Sudipti was not mentioned as an associate.

However, Sinha had alleged that Sudipti, DLF Home Developers Limited and DLF Estate Developers Limited were sister concerns, inextricably linked and were part of the DLF Group.