Sebi imposes penalty on Suzlon, executives for misstating financials
In a 96-page order, Sebi stated an earlier adjudication order handed in June 2025, which had exonerated Suzlon and its executives, was faulty and never within the curiosity of the securities market. The regulator has now invoked its revisionary powers beneath the Sebi Act to rethink the matter and impose penalties.
Sebi initiated investigation after it acquired an nameless criticism in 2019 alleging irregularities in Suzlon’s dealings with subsidiaries and associates. The regulator later appointed a forensic auditor to look at transactions undertaken by the renewable power firm between FY14 and FY20.
A key transaction beneath Sebi’s scrutiny is Suzlon’s 2014 sale of its operations and upkeep companies (OMS) enterprise to its wholly owned subsidiary, Suzlon World Companies (SGSL), for ₹2,000 crore.
Sebi alleged the enterprise was price solely round ₹77 crore and that the deal enabled the corporate to e book a acquire of ₹1,922.9 crore.
The regulator alleged that solely ₹700 crore was really acquired over FY15 and FY17, and the remaining ₹1,300 crore was proven by round financial institution entries routed a number of instances between Suzlon and SGSL.
The identical belongings had been later used to generate one other accounting acquire of ₹829.78 crore, when SGSL shares had been transferred to a different subsidiary, it stated.These transactions helped Suzlon keep away from reporting a unfavorable web price and enabled it to lift capital, Sebi stated.
The regulator additionally alleged that Suzlon didn’t correctly disclose a contingent legal responsibility of about ₹4,050 crore linked to a standby letter of credit score issued for loans availed by abroad subsidiary AE Rotor Holding BV.
It stated Suzlon incorrectly categorized the publicity as an insurance coverage contract as an alternative of a monetary assure legal responsibility beneath accounting requirements.
