Synopsis
On March 6, five officials from Add-Shop E-Retail Limited and White Organic Agro Limited resolved a case with SEBI regarding regulatory violations, paying a total of Rs 95.55 lakh. Their settlement was the result of a thorough investigation into alleged financial misrepresentation and compliance issues.Key Takeaways
- Settlement Amount: Rs 95.55 lakh
- Involved Companies: Add-Shop E-Retail Limited, White Organic Agro Limited
- Key Officials: Dadhania Vivek Gopalbhai, Nirajkumar K Malaviya
- Regulatory Body: Securities and Exchange Board of India (SEBI)
- Allegations: Financial misrepresentation and related-party transaction irregularities
Mumbai, March 6 (NationPress) A group of five individuals, both current and former officials of Add-Shop E-Retail Limited (ASERL) and White Organic Agro Limited (WOAL), have successfully resolved a case with the Securities and Exchange Board of India (SEBI) concerning alleged breaches of regulatory standards.
They have agreed to pay a total of Rs 95.55 lakh as part of the settlement. ASERL focuses on the production, marketing, and distribution of Ayurveda products, while WOAL is involved in the organic food sector.
The settlement was finalized by Dadhania Vivek Gopalbhai, serving as an audit committee member of ASERL, alongside Nirajkumar K Malaviya, the company secretary and compliance officer of ASERL.
Additional parties in the settlement include Jigna V Thakkar, an audit committee member of WOAL, Dharmesh Bhanushali, the chairman of the audit committee of WOAL, and Chandresh Regulations, the former audit committee chairman of WOAL.
Out of the total settlement amount, Malaviya contributed Rs 40.95 lakh, while the other four officials paid Rs 13.65 lakh each.
The resolution was achieved after the officials submitted a request to SEBI, aiming to settle the issue without admitting or disputing the allegations under the regulator's settlement guidelines.
In an order released on March 6, SEBI acknowledged the settlement and confirmed the closure of proceedings against the individuals involved.
The case stemmed from complaints lodged between December 2021 and September 2023, alleging irregularities concerning related-party transactions and misleading statements about supply orders.
In response, the market regulator initiated an investigation covering the timeframe from April 2020 to March 2023.
This inquiry sought to uncover any potential breaches of the SEBI Act, the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, and the Listing Obligations and Disclosure Requirements (LODR) Regulations.
Findings from the investigation suggested that ASERL and WOAL had purportedly misrepresented their financial reports for the fiscal years 2020-21, 2021-22, and 2022-23.
Additionally, it was discovered that ASERL had manipulated records concerning the attendance of independent directors at audit committee and board meetings during that time period.
