sebi:WTM/AB/CFID/CFID/30277/2024-25
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
LEEL held to have contravened Regulation 4(1) of PFUTP Regulations and LODR Regulations; no directions issued against LEEL due to ongoing liquidation; monetary penalties imposed on Noticees 2 to 5 and Noticees 7 to 9; Noticee 9 held to have contravened Regulation 6(2)(a),(b),(c) of LODR Regulations; benefit of doubt granted to Noticee 8.
Provisions invoked
- s. 15
- s. 19
- s. 11B
- s. 12A
- s. 11
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 21
- s. 66
- s. 33(2)
Regulations
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 4(2)(f)
- Reg. 23(1)
- Reg. 4(2)(e)
- Reg. 18(3)
- Reg. 23(2)
- Reg. 6(2)
- Reg. 16(1)(b)
- Reg. 27
Parties
- LEEL Electricals Ltd.
- Noticee 2
- Noticee 3 (Achin Kumar Roy)
- Noticee 4
- Noticee 5
- Noticee 6
- Noticee 7
- Noticee 8
- Noticee 9 (Anita Kakkar Sharma)
- Sushil Kabra
- Surjit Kishan Sharma
Holding
LEEL Electricals Ltd. was held to have contravened Regulation 4(1) of the PFUTP Regulations by diverting funds to related parties, camouflaging receivables by transferring Rs. 313.23 Crore to CWIP, and misrepresenting financial statements through fictitious entries. No directions were issued against LEEL due to its ongoing liquidation, but monetary penalties were imposed on Noticees 2 to 5 and 7 to 9, and Noticee 9 was held to have contravened Regulation 6(2) of the LODR Regulations.
Full text
___________________________________________________________________ Final Order in the matter of LEEL Electricals Ltd. Page 2 of 66 stated that LEEL had availed GST input tax credit of Rs. 40.53 Crore against reported purchase of material amounting to Rs. 225.19 Crore without actually receiving any goods and without any underlying financial transactions. The letter also mentioned that the Whole Time Director and Chief Financial Officer of LEEL had admitted in a statement filed before the High Court of Rajasthan that the company had entered into such transactions to show an increase in the volume of turnover.
___________________________________________________________________ Final Order in the matter of LEEL Electricals Ltd. Page 3 of 66 Diversion of Funds:
___________________________________________________________________ Final Order in the matter of LEEL Electricals Ltd. Page 4 of 66 7 FEDDERS ELECTRIC AND ENGINEERING LTD. (FEEL) RELATED * 8.62
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/AB/CFID/CFID/30277/2024-25. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.