SEBI imposes ₹29-cr penalties on Suzlon Energy & key execs in OMS slump sale case

Capital markets regulator Securities and Exchange Board of India (SEBI) on Friday (May 29) has imposed a total penalty of ₹15.95 crore on Suzlon Energy Ltd in a case involving alleged irregularities in the transfer of its operation & maintenance (OMS) business, financial statement misstatements, and related party transactions.

The regulator also imposed penalties on key officials — ₹5.75 crore on former executive vice-chairman Vinod R. Tanti, ₹5.45 crore on Girish R. Tanti, ₹1.5 crore on former chief financial officer Kirti J. Vagadia, and ₹30 lakh on Amit Agarwal — bringing total penalties across entities and individuals to over ₹29 crore.

The case originated from an anonymous complaint received on December 12, 2019, which was referred to NSE for preliminary examination. The review flagged issues relating to investments, loans, impairment, related party disclosures, and possible violations of PFUTP Regulations, 2003 and LODR Regulations, 2015.

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SEBI conducted an investigation covering FY2014–15 to FY2019–20 and the first three quarters of FY2020–21, supported by a forensic audit conducted by Sarath & Associates.

The adjudication proceedings focused on the March 29, 2014, slump sale of the OMS business from Suzlon Energy Ltd (SEL) to its wholly-owned subsidiary, Suzlon Global Services Ltd (SGSL), for ₹2,000 crore, against a stated value of ₹77.08 crore. SEBI recorded a gain of ₹1,922.92 crore booked under exceptional items in FY2013–14.

SEBI observed that ₹1,300 crore of the sale consideration was not received within 90 days and was allegedly routed through circular transactions between March 21 and March 23, 2017, involving repeated routing of funds through bank accounts of Suzlon Energy Ltd and Suzlon Global Services Ltd.

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The regulator also noted that Suzlon Global Services Ltd's asset base expanded significantly post-transaction due to the OMS transfer, while earlier financials showed minimal operations. It further recorded a subsequent stake sale of Suzlon Global Services Ltd to Suzlon Structures Ltd in FY2015–16 for ₹927.83 crore, generating an additional gain of ₹829.78 crore.

SEBI stated that gains from the OMS-related transactions were recorded twice across different financial years, and that the company’s net worth position would have been significantly weaker without these transactions. It also observed impairment of ₹6,026 crore in FY2014–15 and noted that equity issuances and restructuring exercises were undertaken during the period.

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SEBI held violations under provisions of the SEBI Act, PFUTP Regulations, LODR Regulations, and the Listing Agreement, and imposed penalties under Sections 15HA, 15HB of the SEBI Act and Section 23H of the SCRA. The order also records that a prior adjudication order dated June 27, 2025, was set aside while confirming violations and imposing the current penalties.

Shares of Suzlon Energy ended 0.54% lower at ₹56.99 on the NSE today, May 29.