The Securities and Exchange Board of India (SEBI) has imposed fines totaling approximately ₹29 crore on Suzlon Energy and four former executives after uncovering a series of intra-group transactions that misrepresented the company’s financial condition.
In a detailed order, SEBI fined Suzlon Energy ₹15.95 crore. Former chairman Vinod R. Tanti and vice-chairman Girish R. Tanti received penalties of ₹5.75 crore and ₹5.45 crore, respectively. Additionally, former executives Kirti J. Vagadia and Amit Agarwal were fined ₹1.5 crore and ₹30 lakh. The regulator also set aside a previous adjudication order from June 2025 that had cleared the company and its officials of wrongdoing.
The case revolves around transactions conducted between fiscal years 2014 and 2021, which involved the transfer of Suzlon’s operations and maintenance services (OMS) business to Suzlon Global Services Ltd in 2014. According to SEBI, the OMS business had a book value of ₹77.08 crore yet was transferred for ₹2,000 crore, allowing Suzlon to report an exceptional gain of ₹1,922.92 crore. Following this, the company claimed an additional gain of ₹829.78 crore through an intra-group stake transfer in the subsidiary.
SEBI asserted that part of the sale consideration was transferred through circular transactions between the company and its subsidiaries, creating the illusion of payment without actual fund movement. These practices were found to have artificially inflated Suzlon’s net worth while reducing reported losses in its financial statements.
The order also reviewed transactions involving SE Forge Ltd and Suzlon Gujarat Wind Park Ltd, where loans and equity infusions were allegedly funneled through complex intra-group entries before being returned to Suzlon’s entities.
Rejecting the previous adjudicating officer’s rationale that the transactions had received board approvals and were backed by valuation reports and disclosures, SEBI emphasized that the critical issue was whether the arrangements presented a “true and fair” view of the company’s financial situation to investors.
The regulator concluded that both the company and its executives had violated provisions of the Prevention of Fraudulent and Unfair Trade Practices (PFUTP) regulations, listing norms, and securities laws by disseminating misleading financial information to the market.
Published on May 29, 2026.
