Sebi slaps Rs 28.95 crore penalty on Suzlon, promoters over misleading financial disclosure

Capital markets regulator Sebi has imposed penalties totalling Rs 28.95 crore on Suzlon Energy, its chairman and managing director Vinod R Tanti, promoter Girish R Tanti and others for alleged misstatements in the company's financial disclosures spanning several years, PTI reported.

In a 96-page order issued on Friday, Sebi said Suzlon Energy Ltd's financial statements did not present a "true and fair view" of the company's profitability, net worth, leverage, financial exposure and risk profile.

The regulator imposed a penalty of Rs 15.95 crore on Suzlon Energy Ltd (SEL), Rs 5.75 crore on Vinod R Tanti, Rs 5.45 crore on Girish R Tanti, Rs 1.5 crore on former chief financial officer Kirti J Vagadia and Rs 30 lakh on Amit Agarwal.

Vinod R Tanti and Girish R Tanti are promoters of the company.

The order follows Sebi's decision to 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, which alleged irregularities in Suzlon Energy's transactions involving subsidiaries and associate entities.

Following the complaint, the National Stock Exchange conducted a preliminary examination and a forensic audit was subsequently carried out. The issues under review related to investments, loans, impairment and related-party disclosures.

Sebi later launched a detailed investigation to examine whether there had been any misrepresentation or misstatement in Suzlon Energy's financial statements.

The investigation covered the period from FY15 to FY20 and the first three quarters of FY21.

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