SEBI finds KLIL misrepresented financials, misused funds 2015-2017

This is a final order by SEBI regarding Rajendra Pathak, the former CFO of K-Lifestyle & Industries Limited (KLIL), concerning allegations of misrepresentation of financials and misuse of company funds. The order follows a remand by the Securities Appellate Tribunal (SAT) to re-decide the matter after the previous penalty was set aside for procedural violations.

Rajendra Pathak (Noticee); K-Lifestyle & Industries Limited (Company)

• SEBI found that KLIL misrepresented financials and misused funds/books of accounts during the period April 2015 to December 2017.
• SEBI previously imposed a penalty of INR 6 Lakh on Rajendra Pathak in December 2021, which was set aside by the SAT in July 2025 due to violation of natural justice principles.
• The SAT remanded the matter to SEBI to hear the Noticee and pass an appropriate order.
• SEBI directed the Stock Exchanges to appoint an independent forensic auditor, whose report (FAR) formed the basis of the investigation.
• The Noticee claimed he was never appointed as CFO and that his signature was misused, while SEBI's previous order identified him as the CFO who approved financial results.
• The Noticee requested cross-examination of the forensic auditor, which SEBI stated could only be considered after a reply on merits was filed.

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