Capital markets regulator Securities and Exchange Board of India (SEBI) on Friday, 29 May imposed penalties totalling over ₹29 crore on Suzlon Energy Limited and several of its former key officials, following an investigation into alleged irregularities involving the transfer of the company's operation and maintenance services (OMS) business, financial statement misstatements, and related party transactions.

Penalty Breakdown

SEBI levied the largest share of the penalty — ₹15.95 crore — directly on Suzlon Energy Limited. Former executive vice-chairman Vinod R. Tanti was fined ₹5.75 crore, while Girish R. Tanti was penalised ₹5.45 crore. Former chief financial officer Kirti J. Vagadia was fined ₹1.5 crore and Amit Agarwal was penalised ₹30 lakh.

How the Investigation Began

The case originated from an anonymous complaint received on 12 December 2019, which was referred to the National Stock Exchange (NSE) for a preliminary examination. The review flagged concerns over investments, loans, impairment, related party disclosures, and possible violations of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, and the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. SEBI subsequently launched a detailed investigation covering the period from FY2014–15 to FY2019–20 and the first three quarters of FY2020–21, supported by a forensic audit conducted by Sarath & Associates.

The OMS Business Transfer at the Centre of the Case

According to the regulator, adjudication proceedings centred on a slump sale dated 29 March 2014, in which Suzlon Energy transferred its OMS business to its wholly-owned subsidiary, Suzlon Global Services Limited (SGSL), for ₹2,000 crore — despite the stated value of the business being just ₹77.08 crore. The company subsequently booked a gain of ₹1,922.92 crore under exceptional items in FY2013–14.

SEBI observed that ₹1,300 crore of the sale consideration was not received within the stipulated 90-day period and was allegedly routed through circular transactions between 21 March and 23 March 2017, involving repeated movement of funds through the bank accounts of Suzlon Energy Ltd and SGSL.

Subsequent Transactions Under Scrutiny

The regulator further noted that SGSL's asset base expanded sharply after the OMS transfer, even though its earlier financial statements reflected minimal operations. A subsequent stake sale of SGSL to Suzlon Structures Ltd in FY2015–16 for ₹927.83 crore generated an additional gain of ₹829.78 crore, also drawing regulatory scrutiny. This is among the more significant enforcement actions against a listed renewable energy company in recent years, and signals SEBI's continued focus on related-party transaction disclosures and accounting integrity at large corporates.