Suzlon to Contest Rs 28.6 Crore Penalty Imposed by SEBI

Suzlon Energy Challenges SEBI Order Imposing ₹28.6 Crore Penalty

Suzlon Energy has announced its intention to challenge a recent Securities and Exchange Board of India (SEBI) order, which imposed penalties of ₹28.6 crore on the company and certain former executives. The company asserts that SEBI had earlier closed proceedings in the matter without levying any penalty.

The dispute stems from SEBI's order dated May 29, 2026, which concerns Suzlon's financial statements between FY14 and FY18. SEBI's order relates to the company's alleged violations of securities market regulations, including the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations and listing and disclosure norms.

In June 2025, SEBI's Adjudicating Officer (AO) had disposed of show-cause proceedings involving Suzlon and other noticees without imposing any penalty. However, SEBI subsequently exercised its revisionary powers and issued a fresh show-cause notice in September 2025. Following this review, SEBI Whole Time Member Sandip Pradhan set aside the AO's order and concluded that Suzlon and some of its senior management personnel had violated securities market regulations.

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According to SEBI's order, Suzlon had inflated its net worth through transactions involving the sale of its operations and maintenance (O&M) business to a wholly-owned subsidiary in FY14. The regulator alleged that the transaction was executed at a significantly higher valuation than the underlying business and that accounting entries related to the deal led to an overstatement of revenue, turnover, and net worth.

The market regulator imposed penalties on Suzlon Energy and several former executives for alleged violations of securities market regulations. Responding to the order, Suzlon said it had submitted factual explanations and denied the allegations contained in SEBI's September 2025 show-cause notice. The company maintained that it had responded to the regulator in a timely manner and would now pursue legal remedies before the Securities Appellate Tribunal (SAT).