The Securities and Exchange Board of India has imposed a penalty of Rs 15 lakh on Reliance Home Finance for violation of LODR regulations and failure to disclose adverse findings of forensic reports.
Chief executive Ravindra Sharad Sudhalkar, company secretary and compliance officer Parul Jain and chief financial officer Pinkesh Shah were fined Rs 2 lakh, Rs 2.5 lakh and Rs 2 lakh respectively.
In a press release on January 12, 2020, Reliance Home Finance said that the forensic audit report issued by Grant Thornton did not find any adverse findings of fraud, corruption, misappropriation of funds or falsification of accounts by the promoters or associates of the company. The company has disclosed details of the Rs 7,984-crore loan to auditors, regulators and lenders in its annual financial statements approved at the annual general meeting in September 2019, the release said.
However, media later reported, citing GT, that the company had disbursed loans worth about 12,000 rupees to a group of “potentially indirectly related” borrowers with common characteristics who were in poor financial condition. The company did not provide adequate clarification on media reports to the exchange and was evasive in its responses.