An particular person has settled with Sebi a case pertaining to alleged failure to hold out ample “due diligence” with respect to grant of loans by Religare Finvest, a subsidiary of Religare Enterprises, after paying Rs 44.2 lakh in direction of settlement quantity.
The order got here after the person, Pankaj Sharma, filed an software with Sebi proposing to settle the regulatory violations “without admitting or denying the findings” by way of a settlement order.
“The instant adjudication proceeding initiated against Pankaj Sharma in the matter of Religare Enterprises Ltd vide SCN …dated February 15, 2021 is disposed in terms …of the Settlement Regulations,” Sebi stated in a settlement order handed on Tuesday.
Pursuant to receipt of the complaints, Sebi initiated an investigation within the matter of Religare Enterprises Ltd (REL) to look at the allegations of monetary mismanagement and diversion of funds of REL by way of its subsidiaries for the good thing about REL’s promoters or promoter related entities.
The investigation additionally ascertained whether or not there was any violation of the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) in the course of the interval between April 2011 to March 2018.
Based on the findings of the investigation, it was prima facie noticed that funds to the tune of Rs 2,473.66 crore had been alleged to have been diverted from REL by way of Religare Finvest Ltd (RFL) to promoters/promoter group entities of REL.
It was additionally noticed that the people approving the related loans of RFL in addition to administrators of RFL, together with Sharma, had failed to hold out ample due diligence and train impartial judgment with respect to the grant of loans/investments by RFL in the course of the interval of investigation. Therefore, it was alleged that the applicant had violated the provisions of PFUTP guidelines.
Following this, a present trigger discover (SCN) was issued to the applicant in February 2021.
Pending adjudication proceedings, the applicant proposed to settle the moment proceedings initiated in opposition to him. After this, Sebi’s committee really useful the case for settlement on cost of Rs 44.2 lakh. Consequently, he remitted the quantity and settled the case with Sebi.
Earlier, REL and RFL had settled with Sebi a case pertaining to alleged monetary mismanagement and diversion of funds after collectively paying Rs 10.5 crore in direction of settlement charges.
Individually, REL and RFL paid Rs 5.42 crore and Rs 5.08 crore in direction of settlement quantity, respectively.
Source: www.financialexpress.com”