On Friday, markets regulator Sebi imposed a penalty of up to Rs 54 lakh on Jaiprakash Power Ventures, MD and CEO Suren Jain and other senior officials for distorting the company’s financial statements.
Others sanctioned by Sebi are company chairman Manoj Gaur, executive directors — Sunil Kumar Sharma and Praveen Kumar Singh — chief financial officer RK Porwal and former whole-time member MKV Rama Rao.
They were ordered to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in its 89-page plan.
This happened after the regulator conducted an investigation in the case of Jaiprakash Power Ventures Ltd (JPVL), which is part of the Jaypee Group of companies, to determine the possible violation of PFUTP (Prohibition of Fraudulent and Unfair Practices) and LODR (Listing Obligations. and and Disclosure Requirements) laws.
In its investigation, Sebi found that the company overstated its books of accounts by not following proper accounting procedures and by not valuing investments in Sangam Power Generation Company Ltd (SPGCL), Jaypee Arunachal Power Ltd (JAPL) and Jaypee Meghalaya Power Ltd (JMPL) at fair value between and FY 2012-13 to FY 2021-22, hence, profit and loss account and balance sheet the company did not show a true and fair view.
“I believe that the company exceeded its books of accounts by not providing interest on its current investments, Foreign Currency Convertible Bonds (FCCBs) and other unsecured loans in FY 2018-19, therefore, the financial statements of the company were not reflected. true and fair view ,” said Sebi’s Adjudicating Officer Asha Shetty.
By misrepresenting its books of accounts, JPVL violated the provisions of PFUTP and LODR Rules.
Therefore, the regulator imposed a fine of Rs 14 lakh on Jaiprakash Power Ventures, Rs 7 lakh each on Jain, Gaur, Sharma and Singh and Rs 6 lakh each on Porwal and Rao.