Capital markets regulator SEBI on Friday imposed penalties totalling ₹28.95 crore on Suzlon Energy Ltd, its Chairperson-MD Vinod R Tanti, and three others for allegedly misleading investors about the company’s financial performance over several years.
In a 96-page order, SEBI said Suzlon Energy Ltd’s financial statements failed to present a “true and fair view” of the profitability, net worth, leverage, financial exposure and risk profile.
Accordingly, the regulator imposed a fine of ₹15.95 crore on Suzlon Energy Ltd (SEL), ₹5.75 crore on Vinod R Tanti, ₹5.45 crore on Girish R Tanti, ₹1.5 crore on former Chief Financial Officers Kirti J Vagadia and ₹30 lakh on Amit Agarwal.
Both Vinod R Tanti and Girish R Tanti are promoters of the company.
The order came after SEBI set aside an earlier adjudicating officer’s ruling that had disposed of the matter without levying any penalty.
The matter originated from an anonymous complaint received by SEBI in December 2019, alleging irregularities in Suzlon Energy’s dealings with its subsidiaries and associates.
Thereafter, the NSE conducted a preliminary examination and a forensic audit was carried out later. The matter pertained to investments, loans, impairment, and related- party disclosures.
Later, the Securities and Exchange Board of India (SEBI) conducted an investigation into the matter of SEL to ascertain any misrepresentation/ misstatement in its financial statements.
The period of investigation was from FY15 to FY20 and the first three quarters of FY21.