SEBI probes Som Distilleries over ₹21.36 crore related-party guarantee

This order details SEBI's investigation into Som Distilleries and Breweries Ltd and its officials regarding alleged violations of listing regulations, specifically concerning a corporate guarantee for a related party and the dilution of shareholding in a subsidiary without required approvals.

Who it concerns: Som Distilleries and Breweries Ltd, Jagdish Kumar Arora, Nakul Kam Sethi, Om Prakash Singh

What SEBI found or ordered

• SEBI investigated whether the company's books of account were manipulated or misrepresented for FY 2021 to FY 2024.
• Alleged violation of Regulation 23(2) of LODR Regulations for failing to obtain prior Audit Committee approval for a ₹21.36 crore corporate guarantee issued to State Bank of India on behalf of related party Aryavrat Projects and Developers Private Limited (APDPL).
• Alleged violation of Regulation 37A of LODR Regulations for the reduction of the company's shareholding in subsidiary Woodpecker Distilleries and Breweries Private Limited (WDBPL) from 100% to 78.87% via a rights issue, without special resolution or requisite disclosures.
• Directors Jagdish Kumar Arora and Nakul Kam Sethi were alleged to have failed to ensure a sound compliance framework and exercise due diligence.
• Company Secretary Om Prakash Singh was alleged to have failed to ensure conformity with regulatory provisions and discharge compliance responsibilities.
• A Show Cause Notice was issued on March 24, 2026, and the noticees submitted replies and sought document inspection.

Also in the document

• The investigation period covered Financial Years 2021 to 2024.
• The corporate guarantee of ₹21.36 crore remained outstanding during the investigation period but was reportedly terminated as on March 31, 2025, according to the noticees' submissions.
• The subsidiary WDBPL contributed 43.12% and 47.34% of the consolidated revenue of the listed company in FY 2021-22 and FY 2022-23, respectively.
• The order text provided is truncated and does not contain the final adjudication, penalty amounts, or final findings of the Adjudicating Officer.