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Informist, Tuesday, Aug 27, 2024

--SEBI fines Rana Sugars, its MD, 13 others for diversion of funds

--SEBI fines Rana Sugars, its MD, 13 others total 630 mln rupees

MUMBAI – The Securities and Exchange Board of India has levied penalties totalling 630 mln rupees on Rana Sugars Ltd, its promoters, and others for diversion of funds, misstatement of financials, and fraudulent practices. In an order passed today, the market regulator also barred 14 entities, including the company's promoters, managing director, chairman, and others, from the securities market for two years.

SEBI also directed the company to recover total outstanding amount of 3.39 bln rupees from five entities and to recover total loss of 2.68 bln rupees caused to the company and its shareholders due to diversion of funds to these five entities.

The market regulator has imposed a penalty of 70 mln rupees on the company, 90 mln rupees on Promoter and Managing Director Inder Rana, 50 mln rupees on Promoter and Chairman Ranjit Rana, and 50 mln rupees on promoter and director Veer Rana.

SEBI's investigation period in the case was from 2014-15 (Apr-Mar) to 2020-21. The funds were diverted through five entities who acted as conduits and transferred the funds to the company's promoters and family members. These five entities were among the ones SEBI has fined 30 mln rupees each.  End

Reported by Rajesh Gajra

Edited by Ashish Shirke

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