The Securities and Exchange Board of India has imposed a penalty of ₹15 lakh on Reliance Home Finance for violating the LODR regulations and failing to disclose the adverse findings of a forensic report.

The Chief Executive, Ravindra Sharad Sudhalkar, the Company Secretary and Compliance Officer, Parul Jain, and the CFO, Pinkesh Shah, have been fined ₹2 lakh, ₹2.5 lakh, and ₹2 lakh, respectively.

In a press release issued on January 12, 2020, Reliance Home Finance stated that there were no adverse findings in the forensic audit report conducted by Grant Thornton regarding any fraud, embezzlement, fund misappropriation, or falsification of accounts by the company, its promoters, or associates. The release mentioned that the company had disclosed the details of lending amounting to ₹7,984 crore to auditors, regulators, and lenders in the annual financial statements approved by the shareholders at the AGM in September 2019.

However, a subsequent media report, citing Grant Thornton, revealed that the company had provided loans worth approximately ₹12,000 crore to a group of “potentially indirectly linked” borrowers with weak financials and common features. The company did not provide adequate clarifications on the media report to the stock exchanges and gave evasive replies.

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