look news india
Kapurthala : Senior Congress leader and MLA from Kapurthala Rana Gurjit Singh and his family have been dealt a big blow by the Securities and Exchange Board of India (SEBI) by issuing a notice. This has increased the problems of his Rana Sugar Limited (RSL) considerably.
SEBI has banned five companies including the board of directors of RSL for two years. Along with this, a fine of Rs 63 crore has been imposed on 15 companies including six firms including the chairman, MD, director and promoter of RSL, members of Rana family. In the final order issued by the Chief General Manager of SEBI, instructions have been given to pay the said amount online within 45 days. Apart from this, orders have also been issued to RSL to recover the fine amount of Rs 15 crore from five firms within 60 days.
SEBI Chief General Manager G Ramar issued the final order on August 27. It found misappropriation of funds from RSL by RSL promoters and promoter-related organizations, misrepresentation in RSL's financial statements, which led to violations of SEBI Act-1992, SEBI's PFUTP Regulation-2003 and LODR Regulation-2015.
The time frame of its investigation is considered to be from FY 2014-15 to FY 2021-22. SEBI's investigation, among other things, alleges that the company had devised a scheme to divert money by using certain private limited companies indirectly controlled by its managing director, chairman and promoter directors and their family members.
These private companies were not shown as related parties even though they were indirectly controlled by the promoters of RSL including its managing director and as a result transactions with these private companies were also not shown as related parties. On this SEBI has arrested RSL MD-cum-promoter Inder Pratap Singh Rana, chairman-cum-promoter Ranjit Singh Rana, director-cum-promoter Veerpratap Singh Rana, Gurjeet Singh Rana, Karan Pratap Singh Rana, Rajbans Kaur Rana, Preetinder Singh Rana, Sukhjinder Kaur (member of Rana family), Manoj Gupta and five firms Flawless Traders Private Limited, Century Agro Private Limited, JR Builders Private Limited, RJ Taxfab Private Limited, RGS Traders Private Limited were banned from entering the stock market.
All of them have been banned from buying, selling or engaging in any other transaction directly or indirectly in the securities market or being associated with the market for a period of two years from the date of implementation of this order. The orders issued by the SEBI chief include RSL MD-cum-promoter Indra Pratap Singh Rana, chairman-cum-promoter Ranjit Singh Rana, director-cum-promoter Veer Pratap Singh Rana, Gurjit Singh Rana, Karan Pratap Singh Rana, Rajbans Kaur. Rana, Preetinder Singh Rana, Sukhjinder Kaur have also been banned from holding any position as director or chief executive officer of any other listed company for two years. SEBI has issued an order to pay online the fine of Rs 63 crore imposed on RSL and six firms, including eight members of the Rana family and another individual, within 45 days of receipt of this notice.