sebi: Sebi fines Bajaj Hindusthan Sugar Rs 10 lakh for disclosure failures
The order came after the regulator received a complaint through SCORES against Bajaj Hindusthan Sugar, in which the complainant raised concerns over misrepresentations/misrepresentations in the annual report regarding the show cause notice (SCN) issued by the Pollution Control Board.
Following this, Sebi conducted an investigation and found that the company had failed to disclose shutdown orders for the three distilleries – Palia, Gola and Kinauni. Furthermore, the imposition of a penalty of Rs 1.96 crore on certain distilleries was also undisclosed in the 2019-20 financial year.
He further said that the shutdown orders had a substantial impact on sales, production, revenue and profit for fiscal years 2018-19 to 2019-20.
“The order to shut down units/distilleries and the imposition of CPCB (Central Pollution Control Board) sanctions/instructions on certain advisory units (Bajaj Hindusthan Sugar)…are significant events which should have been disclosed by the notice in terms of the Sebi LODR rules (Registration and Disclosure Requirements (LODR),” the regulator said.
In addition, the company provided “erroneous and misleading” information regarding the number of justifications or legal opinions received from the CPCB/SPCB (State Pollution Control Board) pending at the end of the fiscal year as part of the disclosures of the Business Responsibility Report (BRR).
As a result, the regulator imposed the fine on the company.