SAT Stays SEBI's ₹29.15 Crore Penalty Order Against Suzlon Energy, Officials

The Securities Appellate Tribunal on August 7, 2026, stayed the operation of a Securities and Exchange Board of India order imposing penalties totalling ₹29.15 crore on Suzlon Energy Limited and its officials, subject to them depositing ₹10 crore in a fixed deposit with a lien marked in favour of SEBI within four weeks.

The order was passed by Presiding Officer P.S Dinesh Kumar, Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar.

“The impugned order shall remain stayed subject to appellant depositing a sum of Rs.10 Crores in a fixed deposit with a lien marked in favour of the SEBI within four weeks from today.” it held

SEBI, on May 29, 2026, had imposed a penalty of ₹15.95 crore on Suzlon Energy and penalties on its officials after finding that a series of intra-group transactions and financial disclosures allegedly created a misleading picture of the company's financial position.

The regulator had examined Suzlon's transfer of its operation and maintenance services business to wholly owned subsidiary Suzlon Global Services Limited for ₹2,000 crore, through which Suzlon recognised a ₹1,922.92 crore gain. The subsequent transfer of the subsidiary's shares to Suzlon Structures Limited led to a further ₹829.78 crore gain being recognised.

SEBI further found that an exposure of around ₹4,050 crore under a Stand-by Letter of Credit was no longer disclosed as a contingent liability from FY2017-18 after Suzlon treated it as an insurance contract.

Accordingly, SEBI had imposed ₹15.95 crore on Suzlon, ₹5.75 crore on Vinod R. Tanti (Non-Executive Director), ₹5.45 crore on Girish R. Tanti (Non-Executive Director), ₹1.5 crore on Kirti J. Vagadia (Group Chief Finance Officer) and ₹30 lakh on Amit Agarwal (Chief Finance Officer).

The SAT has now stayed the operation of the SEBI order subject to the ₹10 crore deposit condition.

For Appellants: Senior Advocate Pesi Modi, Advocates Neville Lashkari, Vasudha Goenka, Sangram Mallick, Mayur Jaisingh and Kushal Tekriwal

For Respondents: Advocates Sumit Rai, Mihir Mody, Vijay Chockalingam and Aavish Shetty