Sebi Slaps Rs 3.75 Cr Fine on Kwality's Former MD and Associates

Markets regulator Sebi levied fines totaling Rs 3.75 crore on Kwality's former MD Sanjay Dhingra and others for misrepresenting financials from 2016-2018. Dhingra, Sidhant Gupta, and Satish Kumar Gupta are also barred from the securities market. The fine follows an investigation into fraudulent and unfair trade practices.

Markets regulator Sebi has imposed fines totaling Rs 3.75 crore on Sanjay Dhingra, former managing director of dairy firm Kwality, along with other entities, for misrepresenting the company's financials. The firm went into insolvency in December 2018 and was acquired by Sarda Mines in 2022.

Sebi slapped individual fines of Rs 1.5 crore each on Sanjay Dhingra and Sidhant Gupta, a former director and audit committee member of Kwality. Additionally, Satish Kumar Gupta, the company's former Chief Financial Officer, received a penalty of Rs 75 lakh. All three individuals have been barred from the securities market for two years.

The regulatory action resulted from an investigation initiated after a referral from the Income Tax Department, which conducted search and seizure operations in March 2018. Sebi's investigation aimed to verify alleged violations of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) and Listing Obligations and Disclosure Requirements (LODR) rules, concluding that the financial misreporting amounted to Rs 7,574.88 crore.

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