Suzlon to appeal Sebi penalty of about ₹29 crore to SAT over alleged financial statement misrepresentation

Suzlon Energy Ltd said it will move the Securities Appellate Tribunal (SAT) against a Sebi order imposing penalty of Rs 28.95 crore on the company, its two promoters and ex-CFOs over alleged misrepresentation of financial statements. In a BSE filing, the company stated that the Securities and Exchange Board of India (Sebi), through an order passed on May 29, 2026, set aside an earlier adjudication ruling on June 27, 2025. The earlier ruling had exonerated Suzlon Energy and its promoter-directors Vinod R Tanti, Girish R Tanti and former CFOs Kirti J Vagadi and Amit Agarwal without imposing any penalty regarding allegations of misrepresentation in financial statements between FY14 and FY18. "The company will be filing an appeal before the Securities Appellate Tribunal in respect of the SEBI order dated 29th May 2026," the renewable energy solutions provider said on Saturday. Capital markets regulator Sebi imposed a penalty of Rs 15.95 crore on Suzlon Energy Ltd (SEL), Rs 5.75 crore o

Suzlon Energy plans to challenge a recent Sebi order that imposed penalties of nearly Rs 29 crore on the company and several former executives over alleged accounting and disclosure violations. In an exchange filing, Suzlon said it intends to file an appeal before the Securities Appellate Tribunal (SAT) against the regulator's order dated May 29."The findings of Sebi in the said order are related to the financial statements of the company from FY14 to FY18. The company will be filing an appeal before the Securities Appellate Tribunal in respect of the Sebi order," the company said.The development comes a day after Sebi imposed penalties on Suzlon and a number of former senior executives following a long-running investigation into the company's historical financial reporting practices.The market regulator levied a penalty of Rs 15.95 crore on Suzlon, while former executive Vinod R Tanti was fined Rs 5.75 crore and Girish R. Tanti was penalised Rs 5.45 crore. Former group CFO Kirti J. Vagadia was fined Rs 1.5 crore, while former CFO Amit Agarwal was directed to pay Rs 30 lakh.Sebi action followed a forensic audit and investigation covering multiple financial years after the regulator received a complaint alleging irregularities in dealings involving subsidiaries and associate entities.The regulator concluded that certain transactions between Suzlon and its subsidiaries had the effect of overstating profits and strengthening the appearance of the company's financial position.Among the issues examined were transfers of businesses and investments among group entities, accounting treatment of contingent liabilities, impairment reversals and disclosures made in financial statements.According to Sebi, some transactions involving subsidiaries resulted in substantial accounting gains being recorded without reflecting the underlying economic reality of the arrangements. The regulator also questioned the treatment of certain liabilities and fund flows between group entities, concluding that the company's disclosures did not present a true and fair picture of its financial position during the period under review.Sebi said accurate financial statements are critical because investors rely on them while assessing the health and prospects of listed companies. The regulator held that the violations warranted monetary penalties under provisions relating to disclosure norms, listing regulations and fraudulent and unfair trade practices.Suzlon, however, has now moved to contest the findings before the appellate tribunal.The company has undergone a significant turnaround over the past few years after overcoming a prolonged debt crisis and has emerged as one of the biggest beneficiaries of India's renewable energy push. It recently reported strong operational performance and remains one of the country's largest wind energy equipment manufacturers.The appeal before the SAT will determine whether the regulator's findings and penalties are upheld, modified or set aside. Until then, the Sebi order remains in force.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.)