## Sebi Fines LEEL Electricals and Former Officials for Financial Malpractices
The Securities and Exchange Board of India (Sebi) has imposed fines totaling Rs 14.2 crore on LEEL Electricals' promoter Bharat Raj Punj and six former officials. The individuals have also been barred from the securities markets for up to five years due to their involvement in financial malpractices and manipulations within the company's accounts.
The individuals penalized by Sebi include Anita Kakar Sharma, Achin Kumar Roy, Nipun Singhal, Mukat Behari Sharma, Surjit Krishan Sharma, Geeta Tekchand, and Bharat Raj Punj. These individuals held various positions within LEEL Electricals, including compliance officer, Vice President (Finance), whole-time members, CFO, and independent directors.
The investigation stemmed from a complaint received by Sebi in November 2018 alleging that the promoters and senior management of LEEL Electricals had diverted funds, including proceeds from the sale of the company's consumer durable business to Havells India for Rs 1,550 crore.
Further investigation revealed that LEEL had availed of GST input tax credit of Rs 40.53 crore against a reported purchase of material amounting to Rs 225.19 crore without actually receiving any goods or engaging in any underlying financial transactions.
Sebi's final order concluded that the case involved a complete breakdown of governance structures within the company, resulting in the siphoning off of significant amounts of money over several years. This ultimately led to the erosion of shareholder wealth and the company's liquidation.
The individuals involved were found to have violated regulations pertaining to accurate and timely disclosures, failing to act in compliance with listing obligations and disclosure requirements, and being complicit in misappropriation and misstatements.
Sebi imposed individual fines ranging from Rs 10 lakh to Rs 5 crore on the individuals involved. They are required to pay the fines within 45 days, with a 12% per annum interest applicable for late payments.