The Securities and Exchange Board of India (SEBI) penalised Suzlon Energy Ltd. (SEL)and its top brass ₹28.6 crore for ‘inflating the company’s net worth through circular transactions and misleading investors.’According to the order released on Friday, SEL sold its OMS(operations and maintenance services) business, worth ₹77.08 crore to one of its subsidiaries SGSL (a wholly-owned subsidiary of SEL) on a slump-sale basis for a lump-sum consideration of ₹2,000 crore in March 2014. The gain on sale of the division aggregating to ₹1,922.92 crore had been shown under exceptional items in FY2013-14. This was done in different layers; first a payment of ₹700 crorewas made through bank accounts. Then, the balance ₹1,300 crore was further divided into two payments of ₹900 crore and ₹400 crore respectively. The ₹900 crore was recorded as ₹150 crore six times and the rest as four records of ₹100 crore each. These ‘false records misstated the revenue and turnover. ‘“Had this slump sale not been done, its net worth would have gone down to a negative ₹3,555.92 crore in FY 14-15,” said Sandip Pradhan Whole Time Member , in the order. Further, SEL used these misreported accounts to raise equity share capital worth ₹1,800 crore from Mr. Dilip Shanghvi Family & Associates and availed loan restructuring from banks for ₹393 crore. SEBI found Suzlon and its key top executives Vinod.R.Tanti, Girish.R.Tanti, Kirti.J.Vagadia, and Amit Agarwal in violation of Prohibition of Fraudulent and Unfair Trade Practices, and listing and disclosure rules and accordingly penalised them. SEBI ordered them to pay them penalty in 45 days of the receipt of the order. Published - May 29, 2026 09:23 pm IST