Sebi imposes Rs 58.5 crore penalty on Seya Industries’ top executives for financial fraud and fund diversion

May 3, 2025

SEBI has penalized four Seya Industries officials, including Ashok and Amrit Rajani, with ₹58.5 crore for allegedly diverting ₹81.26 crore to promoter-linked firms and falsifying financial statements. The regulator barred them from the securities market for five years and directed Amrit Rajani to return the siphoned funds with 12% interest.

Markets regulator Sebi has imposed a total penalty of Rs 58.5 crore on four senior officials of Seya Industries Ltd, including promoter and Chairperson Ashok Rajani and his son, Amrit Rajani, for allegedly siphoning off funds and falsifying financial statements over multiple years, news agency PTI reported.

In its final 122-page order issued Friday, Sebi found that Seya Industries diverted Rs 81.26 crore to companies linked to the promoter family — namely Whiz Enterprises, Aneeka Universal, and Shri Balaji Entertainments — under the guise of sales and purchases, or via undisclosed fund transfers during FY19, FY20, and FY21. These transactions were concealed and not reported as related party transactions in the company’s financial statements, violating several regulatory norms.

The regulator levied a Rs 28 crore fine each on Ashok Ghanshyamdas Rajani (Chairman and Managing Director) and Amrit Rajani (CFO), Rs 2 crore on Executive Director Asit Kumar Bhowmik, and Rs 50 lakh on Executive Director Sivaprasada Rao Buddi.

Sebi said Seya Industries also falsified its financial records for FY19 and FY20 through fictitious sales and purchases, in violation of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) rules and disclosure obligations.

[The Times of India]