The 52 entities include borrowers or intermediary conduit entities through which funds were transferred and entities which played a key role in the approval of RFL lending to various borrower companies.
The 52 entities include borrowers or intermediary conduit entities through which funds were transferred and entities which played a key role in the approval of RFL lending to various borrower companies.
Capital markets regulator SEBI has imposed a total fine of Rs 21 crore on 52 entities, including Fortis Healthcare Holdings, for massive diversion and misappropriation of funds of Religare Finvest, a unit of Religare Enterprises.
According to an order passed by the Securities and Exchange Board of India (SEBI) on Monday, they have been asked to pay the fine within 45 days.
The case involved a complex web of transactions whereby funds of listed company Religare Enterprises Ltd (REL) were transferred through its subsidiary Religare Finvest Ltd (RFL) to the erstwhile promoters – RHC Holding, Malvinder Mohan Singh and Shivinder Mohan. Was diverted for the last profit. Lion. Money was also misused for repayment of earlier loans taken from RFL.
In its 390-page order, SEBI said, “The entire scheme of fraud resulted in diversion of funds of ₹ 2473.66 crore from a material subsidiary of REL and misutilisation of funds of ₹ 487.92 crore of RFL.”
Such huge diversion and misappropriation of funds of RFL in which REL held 85.64% and which contributed 57% of the consolidated revenue of RFL as on 31st March, 2018, certainly amounts to misappropriation of assets of a listed company and in return to investors. also affects. added.
The elaborate scheme was executed to utilize the funds of a material subsidiary of a listed company for the ultimate benefit of the promoters.
The 52 entities include borrowers or intermediary conduit entities through which funds were transferred and entities which played a key role in the approval of RFL lending to various borrower companies.
While imposing a penalty ranging from ₹ 2 lakh to ₹ 1 crore, SEBI has taken into account the amount given by the entities to be diverted or misused.
As regards Key Managerial Personnel (KMP) or Directors of REL, RFL, RHC Holding, the regulator has taken into account the position and responsibilities of these officers in such companies, the amount diverted or misused and the KMP Tenure of / Director in the Company.
SEBI has imposed a fine of ₹1 crore on Bipin Kabra, Chief Financial Officer of RFL and a member of the loan sanction committees of RFL; ₹90 lakh each on Ranchem Private Limited and Fern Healthcare; ₹85 lakh at Torus Buildcon; Nishu Finlease, Sunil Kumar Garg and Maninder Singh at ₹70 lakh each; ₹30 lakh on Srei Infrastructure Finance; and ₹15 lakh on Fortis Healthcare Holdings.
The order came after the regulator received complaints from shareholders during January and February 2018 against the company alleging financial mismanagement and diversion of funds in RFL for the benefit of the promoters of REL/promoter group companies.
Subsequently, SEBI conducted an inquiry to find out whether there had been any violation of regulatory norms during the period April 2011 to March 2018.