India Power MD Raghav Raj Kanoria Settles SEBI Proceedings Over Financial Statement Misstatements

Raghav Raj Kanoria, the Managing Director of India Power Corporation Limited (IPCL), has settled adjudication proceedings with SEBI regarding alleged financial misstatements by paying ₹24.70 lakh.

The matter was settled under SEBI's settlement regulations without Kanoria admitting or denying any findings. Following the payment, SEBI Adjudicating Officer Jai Sebastian officially disposed of the proceedings.

The proceedings arose from a Show Cause Notice issued on May 28, 2025, alleging that Kanoria, in his capacity as Managing Director, was responsible for misstatement of the company's financial statements for FY 2022-23 and FY 2023-24 by failing to recognise Expected Credit Losses on receivables from Power Trust amounting to ₹199.70 crore and on unsecured loans, including accrued interest, amounting to ₹37.53 crore.

Pending the adjudication proceedings, Kanoria filed a settlement application under the SEBI (Settlement Proceedings) Regulations, 2018. The High Powered Advisory Committee recommended settlement upon payment of ₹24.70 lakh, which was subsequently approved by the Panel of whole-time members of SEBI.

In view of the acceptance of the settlement terms and receipt of the settlement amount, SEBI disposed of the adjudication proceedings against Kanoria.

The regulator clarified that the settlement is without prejudice to its right to reopen or initiate enforcement proceedings if any representation made by the applicant during the settlement proceedings is subsequently found to be false or if the applicant breaches any undertaking or condition of the settlement.