Sebi Dismisses Bajaj Hindusthan's Jurisdiction Challenge in Fund Diversion Investigation
Sebi rejects Bajaj Hindusthan's jurisdiction plea in fund diversion probe
Business Standard
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The Securities and Exchange Board of India (Sebi) has dismissed objections from Bajaj Hindusthan Sugar Limited and its promoters regarding a fund diversion investigation. The probe indicates potential misappropriation of ₹1,189.1 crore through related companies, despite previous audits claiming no wrongdoing.
- 01Sebi's investigation revealed potential fund diversion of ₹1,189.1 crore.
- 02Bajaj Hindusthan's defense relied on past forensic audits by Deloitte and Mazars.
- 03The regulator found evidence of misleading disclosures in annual reports.
- 04The case involves alleged fund diversion through Ojas Industries and Bajaj Power Generation.
- 05Sebi maintains jurisdiction despite the company's claims.
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The Securities and Exchange Board of India (Sebi) has rejected preliminary objections from Bajaj Hindusthan Sugar Limited and its promoters, Shishir Bajaj and Kushagra Bajaj, regarding an investigation into alleged fund diversion. The probe focuses on ₹318.5 crore diverted through Ojas Industries and ₹870.6 crore through Bajaj Power Generation, alongside claims of misleading disclosures in annual reports between FY11 and FY22. Bajaj Hindusthan argued that forensic audits conducted by Deloitte and Mazars during debt restructuring mandated by the Reserve Bank of India (RBI) found no evidence of fund misappropriation, asserting that Sebi lacked jurisdiction. However, Sebi countered that these audits did not review the relevant bank accounts of the involved companies, thus affirming its authority to continue the investigation.
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The investigation could affect investor confidence in Bajaj Hindusthan and its associated companies, potentially impacting stock prices and market perception.
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