Description
SEBI order against Golden Tobacco Limited and its officials for fund diversion and misrepresentation to investors.
Summary
SEBI has issued an order against Golden Tobacco Limited (GTL) and three individuals - Mr. Sanjay Dalmia, Mr. Anurag Dalmia, and Mr. Ashok Kumar Joshi - for violations related to fund diversion and misrepresentation to investors during FY 2009-10 to 2020-21.
Key Points
- GTL transferred Rs. 17,517.57 lakhs to subsidiary GRIL as loans and advances
- Only Rs. 3,599.14 lakhs were returned, with Rs. 11,415.52 lakhs allegedly diverted
- Funds were supposedly for acquiring development rights under Joint Development Agreement
- SEBI found advances were not utilized for intended purpose and were diverted to entities connected with promoters
- GTL is under Corporate Insolvency Resolution Process (CIRP) since June 2022
- Investigation covers violations of SEBI Act, PFUTP Regulations, and LODR Regulations
Regulatory Changes
No new regulatory changes introduced - enforcement of existing regulations under SEBI Act 1992, PFUTP Regulations 2003, and LODR Regulations 2015.
Compliance Requirements
- Proper disclosure of fund utilization to investors
- Accurate representation of advance recoverability
- Compliance with related party transaction disclosure norms
- Adherence to corporate governance requirements
Important Dates
- Investigation Period: FY 2009-10 to 2020-21
- Joint Development Agreement: August 13, 2010
- NCLT CIRP Order: June 8, 2022
- SEBI Order Date: August 29, 2025
Impact Assessment
High impact enforcement action demonstrating SEBI’s focus on fund diversion cases. Highlights risks of inadequate disclosure and misrepresentation in listed company operations. Sets precedent for similar cases involving subsidiary fund transfers and related party transactions.
Impact Justification
SEBI enforcement action involving significant fund diversion and investor misrepresentation