Market regulator Securities and Exchange Board of India (SEBI) has slapped a penalty on renewable energy major Suzlon Energy Ltd and its executives. Following a detailed investigation, SEBI has imposed a cumulative penalty of Rs 28.95 crore on the company and four of its executives.  

The penalty breakdown

The fine is among the corporate entity and its key executives. Suzlon beared the brunt with a Rs 15.95 crore penalty. Key executives: Vinod R Tanti and Girish R Tanti have been slapped with fines of Rs 5.75 crore and Rs 5.45 crore, respectively. Furthermore, Kirti J. Vagadia faced a Rs 1.5 crore penalty, while Amit Agarwal has been ordered to pay Rs 30 lakh.  

Why did SEBI impose penalties?

SEBI observed that company's reported financial statements collectively resulted in a "misleading picture of profitability and net worth". The regulator noted that the company published financial statements that did not present a true and fair view of the profitability, net worth.  

One of the issues highlighted by SEBI was the transfer of Suzlon’s Operations & Maintenance (OMS) business to its wholly-owned subsidiary, Suzlon Global Services Ltd (SGSL), in March 2014. While the business had a net book value of just about Rs 77.08 crore, it was transferred for Rs 2,000 crore. This allowed Suzlon to book an exceptional profit of Rs 1,922.92 crore in its financial statements.  

However, SEBI’s probe revealed that to settle the outstanding Rs 1,300 crore, funds were routed repeatedly in a circuitous loop on the exact same days in March 2017. “As regards remaining Rs 1300 crore, on March 21, 2017, Rs.150 crore were routed through bank accounts of SGSL and Noticee 1 six times to show the receipt of the sale proceeds to the extent of Rs.900 crore,” SEBI said.

Suzlon later transferred its stake in SGSL to another subsidiary, booking yet another profit of Rs 829.78 crore on the very same asset base, it noted.

The market regulator also highlighted a disclosure lapse regarding a Stand-by Letter of Credit (SBLC) issued by State Bank of India to secure a loan for a Suzlon subsidiary. 

Meanwhile, Suzlon’s dealings with other subsidiaries, including SE Forge Ltd (SEFL) and Suzlon Gujarat Wind Park Limited (SGWPL), also drew SEBI’s attention. In the case of SGWPL, Suzlon infused Rs 1,200 crore into the subsidiary. 

In an exchange filing on May 30, Suzlon clarified that the adjudicating officer (AO) had previously exonerated all parties on June 27, 2025, without any penalty. 

Suzlon said in its disclosure that, "The Company responded to the SCN in a timely manner, giving factual justifications and denying the allegations made by SEBI in the SCN".  

The company further said that, it “will be filing an appeal before the Securities Appellate Tribunal in respect of the SEBI order dated 29th May 2026".  

On Friday, Suzlon Energy shares closed 0.85% lower at Rs 57.18 per share on the BSE, down from the previous close of Rs 57.67 apiece. The counter has gained more than 40% in the last two months, and long-term investors have witnessed the counter gain over 1000% in a five-year period.