SEBI orders probe into ₹1,922.92 crore artificial profit in Suzlon Energy slump sale
This order addresses SEBI's investigation into Suzlon Energy Limited and its officials regarding alleged misstatements in financial statements, specifically concerning a slump sale of the OMS business and the accounting treatment of contingent liabilities. It details the allegations of inflating net worth and misleading investors through financial disclosures.
Suzlon Energy Limited, Vinod R. Tanti, Girish R. Tanti, Kirti J. Vagadia, Amit Agarwal
- SEBI alleged that a slump sale of the OMS business to a subsidiary for Rs. 2,000 crore resulted in an artificial profit of Rs. 1,922.92 crore in FY 2013-14.
- SEBI alleged that a subsequent transfer of equity stake in the subsidiary to another subsidiary created an additional artificial profit of Rs. 829.78 crore in FY 2015-16.
- SEBI alleged that these transactions inflated the company's net worth, enabling it to raise funds at a premium despite underlying losses.
- SEBI alleged that a contingent liability of USD 569.40 million (approx. Rs. 4,050 crore) related to a Stand-by Letter of Credit (SBLC) was not disclosed in the FY 2017-18 annual report.
- SEBI appointed a forensic auditor (Sarath & Associates) for the investigation period covering FY 2014-15 to the first three quarters of FY 2020-21.
- The order is based on findings from an Adjudicating Officer (AO) and a Show Cause Notice (SCN) issued on November 09, 2022, with a corrigendum on March 12, 2025.
Written from the document by AI, and checked against it. The original below is authoritative.
The original document
Document details
| Official title | Order under Section 15I-3 of the SEBI Act and Section 23I-3 of the SCRA in the matter of Suzlon Energy Limited |
| Source body | Securities & Exchange Board of India (SEBI) — enforcement orders |
| Reference number | WTM/SP/CFID/CFID |
| Status | None (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |