The Securities and Exchange Board of India (Sebi) has concluded adjudication proceedings against Raghav Raj Kanoria, managing director of India Power Corporation. According to reports from The Economic Times, Kanoria has agreed to pay a settlement sum of ₹24.7 lakh to settle allegations concerning misstatements in financial records for two fiscal years. He resolved the issue without admitting to any wrongdoing, leading to the conclusion of the proceedings.
The proceedings pertained to alleged misstatement and misrepresentation of India Power Corporation's financial statements for 2022-23 and 2023-24 over non-recognition of Expected Credit Losses (ECL) on certain receivables and unsecured loans. As reported by The Economic Times, Sebi alleged that the company's financial statements for FY23 and FY24 did not recognise Expected Credit Losses on receivables from Power Trust amounting to ₹199.70 crore. Additionally, the financial statements did not recognise Expected Credit Losses on unsecured loans, including accrued interest, amounting to ₹37.53 crore.
Sebi had issued a show-cause notice to Kanoria in May 2025 for the alleged violations of provisions of the Listing Obligations and Disclosure Requirements (LODR) Regulations. According to The Economic Times, while the adjudication proceedings were pending, Kanoria filed a settlement application with Sebi in July 2025, proposing to settle the matter without admitting or denying the findings of fact and conclusions of law. The recommendation was accepted by a panel of Sebi's Whole Time Members in May this year, following which Kanoria remitted the settlement amount on June 17.
As reported by The Economic Times, Sebi's High Powered Advisory Committee recommended that the case be settled on payment of ₹24.7 lakh. The regulator stated that "In view of the acceptance of the settlement terms and the receipt of the settlement amount by Sebi, the instant adjudication proceedings initiated against the applicant... is disposed of." The settlement represents the conclusion of Sebi's investigation into the alleged misreporting of the company's financial statements.
