SEBI penalizes Golden Tobacco Limited and its promoters for fund diversion, financial misstatements, and disclosure violations.
Mumbai
The Securities and Exchange Board of India (SEBI) has issued a stringent order against Golden Tobacco Limited (GTL) and its promoters after uncovering a series of financial irregularities, including diversion of funds, misstatements in accounts, and violations of key disclosure norms. The order, which follows an extensive investigation, scrutinizes years of questionable financial practices and misuse of company assets.
Promoter Sanjay Dalmia has been barred from participating in the securities market for two years and fined ₹30 lakh for breaching the Listing Obligations and Disclosure Requirements (LODR) and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations. Co-promoter and director Anurag Dalmia faces a ₹20 lakh penalty and a one-and-a-half-year market ban, while former director Ashok Kumar Joshi has been fined ₹10 lakh and prohibited from accessing the capital market for one year.
SEBI’s investigation revealed that between FY10 and FY15, GTL advanced ₹175.17 crore to its subsidiary, Golden Real Estate Infrastructure Limited (GRIL). Alarmingly, most of these funds were diverted to promoter-linked entities, with only ₹36 crore repaid. The regulator also noted that GTL’s promoters and directors executed deals involving prime land assets without disclosing details to shareholders or providing adequate clarity to stock exchanges.
According to SEBI’s Quasi-Judicial Authority N. Murugan, these actions resulted in unjust enrichment of the promoters, violating principles of transparency and corporate accountability. The order reinforces SEBI’s commitment to tightening oversight and enforcing stricter compliance within India’s capital markets.
