Capital markets regulator SEBI on Friday imposed penalties totalling Rs 28.95 crore on Suzlon Energy Ltd, its promoters and former senior executives for allegedly misleading investors through financial statements over multiple years.
The regulator said the company’s financial disclosures failed to present a “true and fair view” of its profitability, net worth, leverage, financial exposure and overall risk profile.
SEBI imposes penalties on Suzlon, promoters and former executives
According to SEBI’s 96-page order, Suzlon Energy Ltd (SEL) has been fined Rs 15.95 crore.
The market regulator also imposed a penalty of Rs 5.75 crore on Chairperson and Managing Director Vinod R Tanti and Rs 5.45 crore on promoter Girish R Tanti.
Former Chief Financial Officer Kirti J Vagadia has been fined Rs 1.5 crore, while Amit Agarwal has been penalised Rs 30 lakh.
Both Vinod R Tanti and Girish R Tanti are promoters of Suzlon Energy.
Investigation followed anonymous complaint and forensic audit
The order comes after SEBI set aside an earlier ruling by an adjudicating officer who had disposed of the matter without imposing any penalty.
The case originated from an anonymous complaint received by SEBI in December 2019 alleging irregularities in the company’s dealings with subsidiaries and associate entities.
Following the complaint, the National Stock Exchange (NSE) conducted a preliminary examination into the matter. A forensic audit was later carried out as part of the investigation process.
The matter related to investments, loans, impairment and related-party disclosures made by the company.
Probe covered FY15 to FY20 financial statements
SEBI later launched a detailed investigation to examine whether Suzlon Energy had made any misrepresentation or misstatement in its financial statements.
The investigation period covered financial years 2014-15 to 2019-20, along with the first three quarters of FY21.
According to the regulator, the findings suggested that the company’s financial statements did not accurately reflect the actual financial position and exposure of the business during the period under review.
