SEBI identifies fund diversion in Bajaj Hindusthan Sugar case

This order addresses SEBI's investigation into Bajaj Hindusthan Sugar Limited (BHSL) and two individuals regarding alleged diversion of funds and non-disclosure of related party transactions between FY 2010-11 and FY 2021-22. It details the procedural history, including the issuance of a Show Cause Notice, the Noticees' settlement attempts, and their legal challenges in the Bombay High Court.

Bajaj Hindusthan Sugar Limited (BHSL), Shishir Bajaj, and Kushagra Bajaj.

• SEBI found prima facie evidence of diversion of ₹318.50 crore to entities under the control of Shishir Bajaj and Kushagra Bajaj via Ojas Industries Private Limited (OIPL) between Dec 2013 and Aug 2014.
• SEBI found prima facie evidence of diversion of ₹870.60 crore via Bajaj Power Generation Private Limited (BPGPL) for infrastructure projects between Nov 2011 and Oct 2014.
• SEBI alleged that the company avoided disclosing these as related party transactions (RPTs) in annual reports since March 2014.
• A Show Cause Notice (SCN) was issued on October 16, 2023, alleging violations of the SEBI Act, SCRA, PFUTP Regulations, and LODR Regulations.
• The Noticees filed settlement applications in December 2023 but withdrew them on February 25, 2026.
• The Bombay High Court (W.P. No. 3409 of 2024) directed SEBI to pass a reasoned order on the issue of jurisdiction before disposing of the matter on merits.
• Personal hearings were held on February 26, 2026, March 20, 2026, and rescheduled to May 06, 2026.

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