India's capital markets regulator, the Securities and Exchange Board of India (SEBI), has imposed penalties totaling ₹29 crore on Suzlon Energy, its Chairman and Managing Director Vinod Tanti, and three other senior executives for alleged financial misstatements spanning FY2014 to FY2020.

In a detailed 96-page order, SEBI stated that a June 2025 adjudication order that had previously cleared the company was erroneous and not in the interest of the securities market. Exercising its revisionary powers under the SEBI Act, the regulator reopened the matter following an anonymous complaint received in 2019.

According to SEBI, the investigation uncovered irregularities related to Suzlon Energy's 2014 sale of its operations and maintenance services business to a wholly owned subsidiary. The regulator alleged that the transaction involved inflated valuations and circular fund movements, which resulted in artificial accounting gains being recorded in the company's financial statements.

SEBI observed that these accounting practices enabled the company to avoid reporting a negative net worth during the relevant financial years. The regulator further noted that the reported financial position may have influenced investor decisions and facilitated the company's ability to raise capital from the market.

Additionally, SEBI alleged that Suzlon failed to adequately disclose a significant contingent liability associated with an overseas subsidiary, resulting in incomplete and potentially misleading disclosures to investors.

The regulator concluded that the financial statements for multiple years did not present a true and fair view of the company's financial position and performance. Consequently, penalties were imposed on the company and certain key managerial personnel responsible for financial reporting and governance during the period under review.

The action highlights SEBI's continued focus on corporate governance, transparency, and accurate financial disclosures in India's capital markets. The regulator emphasized that timely and truthful disclosure of financial information is essential for protecting investor interests and maintaining market integrity.

The matter is expected to remain closely watched by investors and market participants as the company evaluates its legal and regulatory options following the order.