Mumbai: The Securities and Exchange Board of India (Sebi) has penalised five former independent directors of (BDMCL) including Ishaat Hussain and SS Kelkar with a total fine of 59 lakh for alleged failure to carry out adequate due diligence and exercise independent judgment as members of the audit committee.
The other independent directors who have been fined are RA Shah, S Ragothaman and SM Palia.
The regulator has also penalised three former chief financial officers of the company including Vinod Hiran, Puspamitra Das and Vishnu Peruvamba, for certifying that the financials of Bombay Dyeing, presented a true and fair view of its affairs and did not contain any misleading statement.
Sebi conducted an investigation to ascertain whether the books of accounts of the company were manipulated for the financial years FY2011-12 to FY2018-19.
The investigation revealed that
had entered into various memoranda of understanding (MoUs) with Scal Services, a group company whose entire shareholding was directly and indirectly held by BDMCL. During FY12 to FY18, the revenues were recognised on the basis of the MoUs and not consolidating the transactions with Scal, which inflated the sales and profits of BDMCL’s real estate business to the tune of 2,492.94 crore and 1,302.20 crore respectively, Sebi said.
The regulator alleged that the company executed a scheme with Scal where it artificially inflated its sales and profits by booking non-genuine sales of flats in Project One ICC and Project Two ICC at Dadar, Mumbai under 11 MoUs.
Source: https://news.google.com/__i/rss/rd/articles/CBMigAFodHRwczovL2Vjb25vbWljdGltZXMuaW5kaWF0aW1lcy5jb20vbWFya2V0cy9zdG9ja3MvbmV3cy9zZWJpLXBlbmFsaXNlcy05LXBlcnNvbnMtaW4tYm9tYmF5LWR5ZWluZy1jYXNlL2FydGljbGVzaG93Lzk1MjI4Nzg0LmNtc9IBAA?oc=5
