SEBI finds prima facie evidence of 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 filing of settlement applications, and the subsequent withdrawal of those applications following a Bombay High Court directive.

Bajaj Hindusthan Sugar Limited, Shishir Bajaj, 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 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.

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