Individually, SEBI imposed penalties within the vary of ₹3 crore to 7 crore on Rana Sugars, its promoters, and different associated entities.
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Markets regulator Securities and Alternate Board of India (SEBI) has debarred 14 entities together with, Rana Sugars promoters’ and different associated entities from the securities markets for 2 years and slapped a ₹63-crore positive on them on prices of diversion of funds.
The regulator additionally prohibited Inder Pratap Singh Rana (promoter), Ranjit Singh Rana (chairman), Veer Pratap Singh Rana (MD), Gurjeet Singh Rana, Karan Pratap Singh Rana, Rajbans Kaur, Preet Inder Singh Rana and Sukhjinder Kaur (promoter) from holding any place as director or key managerial particular person of another listed firm for 2 years.
On SEBI chairperson’s conflicts of interests
Ranjit Singh, Veer Pratap and Sukhjinder Kaur have been additionally the promoters of Rana Sugars Restricted, as per the alternate knowledge.
Individually, SEBI imposed penalties within the vary of ₹3 crore to 7 crore on Rana Sugars, its promoters, and different associated entities.
“I discover that noticee No 1 to 9, who’re promoters of RSL and beneficiaries of such diversion of funds from RSL, have violated PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices) laws.”
“…additionally discover that Noticee No 10 (Manoj Gupta), who was CFO and signed and licensed such manipulated monetary statements of RSL, aided and abetted such diversion of funds from RSL to its promoters and their members of the family violated PFUTP laws,” SEBI’s Chief Common Supervisor G. Ramar stated within the last order on Tuesday (August 27, 2024.)
The probe revealed that Rana Sugars Restricted didn’t disclose Laxmiji Sugars Mills Firm as a associated celebration in FY 2016-17. Additional, the agency didn’t disclose FTPL, CAPL, JABPL, RJPL and RGSPL as associated events.
Inder Pratap, Ranjit, Veer Pratap Singh Rana, have been individuals in command of and answerable for the affairs of Rana Sugars. Due to this fact, Rana Sugars, Inder Pratap, Ranjit Singh and Veer Pratap Singh Rana have violated the disclosure guidelines.
SEBI additionally famous with respect to the motion of funds between RSL and its associated entities was not in direction of enterprise advance for the acquisition of sugar cane seeds and reimbursement of unsecured mortgage.
Associated events are Flawless Merchants Non-public Restricted (FTPL), Century Agros Non-public Restricted (CAPL), Jay Aar Builders Non-public Restricted (JABPL), RJ Texfab Non-public Restricted (RJPL) and RGS Merchants (RGSPL).
“These funds have been then transferred by RSL to associated events on the identical day to promoters of Rana Sugars and their members of the family. The regulator discovered that associated events aided and abetted Rana Sugars, its promoters and administrators to divert funds from RSL and violated PFUTP norms,” the order stated.
SEBI additionally directed Rana Sugars to get well ₹607 crore from associated entities which incorporates ₹339 crore in receivables and ₹268 crore in curiosity dues.
Thereafter, the regulator directed Rana Sugars to take all crucial steps for restoration of dues from these entities and suggested them to nominate an impartial legislation agency to take efficient steps for restoration in session with the NSE.
The markets watchdog additionally noticed that RSL, Inder Pratap Singh Rana, Ranjit Singh, Veer Pratap Singh, Gurjeet Singh, Karan Pratap Singh and Rajbans Kaur have failed to offer any clarification for not showing earlier than the investigation authority (IA).
Additional, in addition they didn’t furnish data/paperwork sought by the IA, which hampered the investigation course of, thereby, violating SEBI norms.
The order got here after SEBI investigated the affairs of RSL to look at the diversion of funds from the corporate by the promoters and promoter-related entities of Rana Sugars, and consequent misstatements within the monetary statements of the corporate.
And whether or not the alleged diverted funds have been siphoned off by the promoters and promoter-related entities of the agency, leading to violations of the provisions of PFUTP guidelines and LODR (Itemizing Obligations and Disclosure Necessities) norms. The investigation interval was from monetary 12 months (FY) 2014-15 to FY 2020-21.
