- By Aditya Pratap Singh
- Tue, 26 Dec 2023 05:37 PM (IST)
- Source:JND
Capital market regulator SEBI on Tuesday banned five former officials of Fedders Electric and Engineering Limited (FEIL) for 2 years and imposed Rs. 4 crore penalty for Irregularities in company accounts. The regulatory body also barred them from holding directorship or key managerial personnel in any listed company or any registered intermediary for two years.
In total of six persons were penalised by SEBI which included Akhtar Aziz Siddiqui, CFO-cum-whole-time director, member of the audit committee (AC) and in-charge of finance and accounts at FEEL; Sam Sundar Dhawan, Bindu Dogra and Ritushree Sharma, who were independent directors of FEEL from FY 2013-14, Ritushree Sharma from FY 2017-18 and Bharat Raj Panj, who were part of the promoters of the company.
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As per PTI, SEBI conducted an inquiry for the period of April 2012 to April 2021 into the matter of FEEL to ascertain whether the books of accounts of the company were tampered with or whether the promoters/directors/key managers contravened any misappropriation of company funds.
SEBI found that FEEL showed increased turnover by showing sales and purchases to related companies including LEEL Electricals Ltd. However, the relative figures of buying and selling shown by LEEL are lower than those shown by FEEL. Such arrangement of diversion of funds by showing fictitious transactions with related entities was possible as both FEEL and LEEL were run by a common group of individuals, Sebi said in an order passed on Friday.
The regulator said FEEL and its KMPs, which are instrumental in the company's affairs, failed to comply with governance requirements and imposed sanctions on them accordingly.
As per the report. Akhtar Aziz Siddiqui was fined Rs. 1.25 crores, Sham Sundar Dhawan Rs. 1.2 crores, Bharat Raj was fined 1 cr, and Bindu Dogra and Ritushree Sharma were fined Rs 35 lakh each. The penalty has been ordered to be paid within 45 days.
(With PTI Inputs)
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