SEBI finds prima facie evidence of fund diversion in Bajaj Hindusthan Sugar case

It details the procedural history, including the issuance of a Show Cause Notice, the filing of settlement applications, and the subsequent withdrawal of those applications following a Bombay High Court directive.

Who it concerns: Bajaj Hindusthan Sugar Limited, Shishir Bajaj, Kushagra Bajaj

What SEBI found or ordered

• 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 misleading information regarding related party transactions in annual reports since March 2014.
• A Show Cause Notice 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.
• Hearings were conducted on multiple dates, including February 26, 2026, March 20, 2026, April 22, 2026, and May 06, 2026.

Also in the document

• The total amount of alleged fund diversion identified by SEBI is approximately ₹1,189.10 crore (₹318.50 crore + ₹870.60 crore).
• The investigation period spans over a decade (FY 2010-11 to FY 2021-22).
• The Noticees cited forensic audits by Deloitte and Mazars that concluded no diversion or misappropriation occurred, arguing these reports were not considered by SEBI's approving authority.
• The Noticees raised objections regarding a 9-year delay in issuing the Show Cause Notice after the alleged transactions.