SEBI final order upholds penalty against Rajendra Pathak over financial misrepresentation

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.

Who it concerns: Rajendra Pathak (Noticee), K-Lifestyle & Industries Limited (KLIL)

What SEBI found or ordered

• SEBI found prima-facie evidence of misrepresentation of financials and misuse of funds/books of accounts of KLIL for the period April 2015 to December 2017.
• The previous final order dated December 21, 2021, imposed a penalty of INR 6 Lakh on Rajendra Pathak for violating Regulation 33(2)(a) of the SEBI (LODR) Regulations, 2015.
• The Securities Appellate Tribunal (SAT) set aside the 2021 order in July 2025, citing violation of natural justice, and remanded the matter to SEBI for a fresh hearing.
• SEBI directed the Noticee to file a reply on merits before considering his request for cross-examination of the forensic auditor.
• The Noticee submitted a reply on merits on March 04, 2026, denying the role of CFO and alleging misuse of his signature.

Also in the document

• The case involves a forensic audit report (FAR) prepared by an independent auditor appointed by BSE, which SEBI relied upon to identify misrepresentation of financials.
• The Noticee claims he was never appointed as CFO and that his signature was forged, whereas SEBI's previous order identified him as the CFO who approved financial results for FY 2015-16, 2016-17, and 2017-18.
• The SAT remand was specifically due to procedural defects in the original inquiry, not necessarily a finding of innocence regarding the underlying financial irregularities.