In a 96-page order, Sebi said an earlier adjudication order passed in June 2025, which had exonerated Suzlon and its executives, was erroneous and not in the interest of the securities market. The regulator has now invoked its revisionary powers under the Sebi Act to reconsider the matter and impose penalties.
Sebi initiated investigation after it received an anonymous complaint in 2019 alleging irregularities in Suzlon’s dealings with subsidiaries and associates. The regulator later appointed a forensic auditor to examine transactions undertaken by the renewable energy company between FY14 and FY20.
A key transaction under Sebi’s scrutiny is Suzlon’s 2014 sale of its operations and maintenance services (OMS) business to its wholly owned subsidiary, Suzlon Global Services (SGSL), for ₹2,000 crore.
Sebi alleged the business was worth only around ₹77 crore and that the deal enabled the company to book a gain of ₹1,922.9 crore.
The regulator alleged that only ₹700 crore was actually received over FY15 and FY17, and the remaining ₹1,300 crore was shown through circular bank entries routed multiple times between Suzlon and SGSL.
The same assets were later used to generate another accounting gain of ₹829.78 crore, when SGSL shares were transferred to another subsidiary, it said.These transactions helped Suzlon avoid reporting a negative net worth and enabled it to raise capital, Sebi said.
The regulator also alleged that Suzlon failed to properly disclose a contingent liability of about ₹4,050 crore linked to a standby letter of credit issued for loans availed by overseas subsidiary AE Rotor Holding BV.
It said Suzlon incorrectly classified the exposure as an insurance contract instead of a financial guarantee liability under accounting standards.
