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Informist, Saturday, May 30, 2026

MUMBAI – The Securities and Exchange Board of India Friday imposed aggregate penalties of INR 289.5 million on Suzlon Energy Ltd. and its promoters, among other key managerial personnel, for securities fraud, misleading disclosures, inaccurate financial reporting, and corporate governance failures. The company has been directed to pay INR 159.5 million while promoters Vinod R. Tanti and Girish R. Tanti and senior management personnel Kirti J. Vagadia and Amit Agarwal have been directed to pay INR 130 million in all.

The case centres on three issues--demerger of the operations and maintenance business from Suzlon Energy, contingent liabilities not shown in an annual report, and circular entries on certain investments. In November 2022, SEBI's adjudicating officer had issued a show-cause notice to Suzlon Energy and its promoters.

In its order, SEBI said that where a listed entity's financial starements are found to be misleading, the roles of those associated with the relevant transactions and senior management during the period must be assessed. The markets regulator said Vinod Tanti, Girish Tanti, Kirti Vagadia, and Amit Agarwal held positions as key managerial personnel in the company during the relevant period of contravention.

The 2022 notice had alleged that the slump sale of Suzlon's operations and maintenance business to wholly owned subsidiary Suzlon Global Services Ltd. in the financial year 2013-14 (Apr-Mar) was structured to create artificial profit and inflate the company's net worth ahead of an imminent impairment. It was also alleged that the valuation from the slump sale was used again in FY16 to book additional profit of INR 8.29 billion when selling the subsidiary Suzlon Global to another wholly owned subsidiary, Suzlon Structures Ltd. SEBI said this amounted to misrepresentation of the company's accounts.

The regulator further alleged that the statements were knowingly published and disclosure of the company's true financial position would probably have influenced investors.

Suzlon Energy allegedly also failed to make provision for a contingent liability of INR 40.50 billion, a stand-by letter of credit from the State Bank of India, for loans of AE Rotor Holding B.V., a wholly owned subsidiary in the Netherlands, in breach of applicable accounting standards.

Suzlon Energy also allegedly reversed and re-impaired investments in SE Forge Ltd., and made loans to SE Forge that were repaid immediately after Suzlon Energy infused equity in the company. The notice further alleged that Suzlon Energy had made circuitous transactions towards investment worth INR 12 billion in Suzlon Gujarat Wind Park Ltd.

In June 2025, the adjudicating officer had dropped the proceedings against the company and its key managerial personnel after a hearing. SEBI, however, found the officer's action to be erroneous and issued another showcause notice to re-examine the order. The regulator found the adjudicating officer had erred in not holding the company and its key managerial personnel accountable for misrepresentation of financial statements and other contraventions, and imposed penalties under the Securities and Exchange Board of India Act, 1992, and the Securities Contracts (Regulation) Act, 1956. 

For the March quarter on a consolidated basis, Suzlon Energy reported a net profit of INR 11.14 billion on revenues of INR 54.68 billion. Friday, its shares closed at INR 56.99 on the National Stock Exchange, down 1% from Wednesday. The stock market was shut Thursday for Id-ul-Zuha (Bakri Id).  End

Reported by Prateem Rohanekar

Edited by Mihika Basu

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