SEBI orders ₹1,922.92 crore artificial profit probe in Suzlon Energy case
This order addresses allegations that Suzlon Energy Limited and its officials misstated financial statements through a 'slump sale' of its OMS business to a subsidiary and by improperly accounting for contingent liabilities, thereby inflating net worth and misleading investors.
Suzlon Energy Limited, Vinod R. Tanti, Girish R. Tanti, Kirti J. Vagadia, and Amit Agarwal
- SEBI alleged that the sale of the OMS business to subsidiary SGSL for Rs. 2,000 crore (against a value of Rs. 77.08 crore) created an artificial profit of Rs. 1,922.92 crore in FY 2013-14.
- SEBI alleged that a subsequent transfer of SGSL stakes to another subsidiary created an additional artificial profit of Rs. 829.78 crore in FY 2015-16.
- SEBI alleged that without these transactions, Suzlon's net worth would have been negative in FY 2015-16 and FY 2014-15.
- SEBI alleged that Suzlon failed to disclose a contingent liability of USD 569.40 million (approx. Rs. 4,050 crore) related to a Stand-by Letter of Credit (SBLC) in its FY 2017-18 annual report.
- SEBI appointed a forensic auditor (Sarath & Associates) and investigated the period from FY 2014-15 to the first three quarters of FY 2020-21.
- The order is based on findings from an Adjudicating Officer (AO) who issued a Show Cause Notice (SCN) in November 2022, with a corrigendum in March 2025.
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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 | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |