Sebi action in golden tobacco case: Market regulator SEBI has passed a new order in the case related to Golden Tobacco Limited (GTL). This order has been in case of misuse of money and misappropriation in financial revelations over years. Under this order, SEBI has banned GTL promoter Sanjay Dalmia from Securities Market for two years. Apart from this, PFUTP (Prohibition of Fraudant and Unfair Trade Practices) has imposed a fine of ₹ 30 lakh under Regulations and Lodr (Listing Obligations and Disktoos Requirements) Regulations. The order was issued on Friday after a detailed investigation into the allegations of misappropriation of assets, misinformation and revelations by the company and its leading officials.
Apart from Sanjay Dalmiya, its promoter and director Anurag Dalmiya has also been banned for one and a half years in the securities market and a fine of ₹ 20 lakh has been imposed. Apart from this, former GTL director Ashok Kumar Joshi has been banned from the Securities Market for one year and a fine of ₹ 10 lakh has been imposed. SEBI had earlier passed the order against Anurag Dalmia, Sanjay Dalmiya on 25 October 2013 and others on 14 February 2014.
What is Golden Tobacco Case?
According to SEBI’s order, GTL gave ₹ 175.17 crore to its subsidiary GRIL in the form of loan and advance from FY 2010 to FY 2015 and has shown it dues in its annual reports. SEBI alleges that only ₹ 36 crore was returned out of it and the rest of the funds were sent to companies associated with GRIL. SEBI alleges that GTL promoters and directors made deal with the company’s important lands without telling the shareholders. Under this, there was talk of giving the land on sale or leasing to a third party, which was either not a complete benefit for the company or the stock exchanges were also not told in a transparent manner.
According to SEBI’s order, he benefited from the money transaction among the promoter entities. However, SEBI also says that in the current action, GTL is not one side nor the promoters companies can not be issued any order against GTL or promoter companies in this matter.
About GTL
GTL, sometimes known for cigarette brands like Panama and Chancellor, has been major changes in the last few years. Now it has important real estate holdings in Mumbai and Delhi. In the year 2022, the Ahmedabad National Company Law Tribunal (NCLT) ordered a corporate insolvency resolution process (CIRP) against it and after that the company went into a state of bankruptcy.