India markets regulator fines Suzlon Energy $1.7 million for lapses in financial statements (updated)

Suzlon Energy

29/05/2026 12:40

Updates with Suzlon's plan to appeal in paragraph 4, changes dateline
BENGALURU, June 1 (Reuters) - India's markets regulator imposed a penalty of 159.5 million rupees ($1.68 million) on Suzlon Energy SUZL.NS on Friday for what it alleged were lapses in the company's financial statements and disclosures.
The Securities and Exchange Board of India (SEBI) also imposed monetary penalties of 57.5 million rupees and 54.5 million rupees on the company's chairman and vice-chairman, respectively, on charges that they were at the helm of affairs during the period of misreporting.
The regulator also levied penalties on the company's former and current chief financial officers. 
Over the weekend, Suzlon said it plans to file an appeal against the order with the Securities Appellate Tribunal, according to its statement to exchanges.
Suzlon Energy's disclosures on key material transactions created a false picture of financial strength that affected market integrity and misled investors, SEBI said in its order.
Certain transactions of the company with its subsidiaries and associates showed misstated financials and inflated net worths, it added. 
The regulator passed the order following a 2019 complaint alleging misrepresentation. The complaint was anonymous, according to SEBI.
SEBI also noted that it was not an isolated accounting entry or a solitary disclosure lapse but was a connected set of transactions by Suzlon with its wholly owned subsidiaries and related group entities over multiple financial years. 
Suzlon routed 12 billion rupees into Suzlon Gujarat Wind Park Ltd (SGWPL) through 16 back-to-back entries without real inflow, SEBI said.
It also said the company had sold a business unit to a subsidiary for 2 billion rupees against a book value of about 77 million rupees.
Suzlon argued that its consolidated statement was largely unaffected due to these discrepancies, SEBI's order showed. However, the regulator drew a distinction and said standalone results "are not a secondary or optional set of accounts" and that they are relied upon by investors. 
If financial statements fail to disclose the real nature and effect of material transactions, "such conduct cannot be treated as a mere internal accounting matter divorced from the securities market", the regulator noted. 


 (Reporting by Jayshree P Upadhyay and Nishit Navin; Editing by Janane Venkatraman)
 ((Nishit.Navin@thomsonreuters.com;))