Capital markets regulator SEBI has imposed penalties exceeding Rs 29 crore on Suzlon Energy Limited and some former key officials. The penalties are related to alleged irregularities concerning the transfer of the company’s operation and maintenance services business, financial statement misstatements, and related party transactions. SEBI fined Suzlon Energy Limited Rs 15.95 crore and also imposed penalties on former executives Vinod R. Tanti, Girish R. Tanti, Kirti J. Vagadia, and Amit Agarwal.
The penalties include fines of Rs 5.75 crore for Vinod R. Tanti, Rs 5.45 crore for Girish R. Tanti, Rs 1.5 crore for Kirti J. Vagadia, and Rs 30 lakh for Amit Agarwal. The case originated from an anonymous complaint received on December 12, 2019, which was then examined by the National Stock Exchange. Concerns were raised regarding investments, loans, impairment, related party disclosures, and possible violations of SEBI regulations.
Following the preliminary examination, SEBI conducted a detailed investigation covering the period from FY2014–15 to FY2019–20 and the first three quarters of FY2020–21. The investigation, supported by a forensic audit by Sarath & Associates, focused on the March 29, 2014 slump sale of Suzlon Energy’s OMS business to its subsidiary for Rs 2,000 crore, despite the business being valued at Rs 77.08 crore.
SEBI found that a significant portion of the sale consideration was not received within the stipulated 90-day period and was allegedly moved through circular transactions in 2017. The regulator also noted the expansion of the subsidiary’s asset base post-transfer, despite minimal operations in earlier financial statements. Additionally, a stake sale of the subsidiary in FY2015–16 generated another substantial gain.
