The market regulator has also imposed a penalty of Rs 10 crore on Thapar, Rs 5 crore on Avantha Holdings, Rs 1 crore on Aditya Birla Finance, Rs 10 lakh on Neelkant and Rs 5 lakh on Gulatee.
The Securities and Exchange Board of India (Sebi) has slapped a penalty of Rs 1 crore on IndusInd Bank in connection with the alleged fund diversion at CG Power and Industrial Solutions by Gautam Thapar of the Avantha Group.
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The market regulator has imposed a penalty of Rs 10 crore on Thapar, Rs 5 crore on Avantha Holdings, Rs 1 crore on Aditya Birla Finance, Rs 10 lakh on Neelkant and Rs 5 lakh on Gulatee.
IndusInd Bank and Aditya Birla Finance were the lenders involved in the transactions with the Avantha Group. 11 entities involved in the matter have been penalised with the penalties aggregating to Rs 30.15 crore.
Thapar, Avantha Holdings, Action Global and Solaris Industrial Chemicals have been barred from the capital market for five years."... noticees herein, acted in concert in order to execute a fraudulent scheme of diversion of funds or creating encumbrances of assets of a listed entity. In the said scheme, each Noticee played its assigned role in order to give these transactions a colour different than the one which they actually hold. In this process, they exceeded their authority, they exercised authority which was not vested in them and misused the authority given to them," Sebi said.
As a result of their acts, Sebi said the funds/assets belonging to the listed company were either diverted or were created encumbrance upon, because of which the company's total liabilities and that of CG Power Group may have been potentially understated by around Rs 1,053.54 crore and Rs 1,608.17 crore, respectively, as on March 31, 2018 and by Rs 601.83 crore and Rs 401.83 crore, respectively, as on April 1, 2017.
The shares of IndusInd Bank fell 1.3 percent in choppy trade on Thursday. The stock was down 0.7 percent at Rs 1,210 on BSE at 11:05 am.
First Published: Oct 6, 2022 8:27 AM IST