SEBI v. Esaar India Limited (round-tripped preferential allotment, 2022)
Judgment entered
Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
A SEBI adjudicating officer fined Esaar India Limited Rs 5 lakh in August 2022 after finding that it had financed part of the subscription money for its own 2011 preferential share allotment, creating a false impression of fresh capital. The order finds about Rs 40 lakh of the Rs 15.9 crore issue was funded this way.
The record
| Agency | SEBI (India) |
|---|---|
| Date filed | 2022-08-25 |
| Date resolved | 2022-08-25 |
| Court | SEBI adjudicating officer |
| Status | judgment |
| Asset class | equities |
| Instruments | Esaar India Limited shares |
| Venue | BSE |
| Criminal parallel | No |
| Defendants | Esaar India Limited |
| Techniques |
What was ordered
- Civil penalty
- —
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- —
- Alleged gain
- —
- Penalty as published
- 500k INR
What is alleged to have happened
A SEBI adjudicating officer in Mumbai decided this matter on 25 August 2022. The sole noticee is Esaar India Limited, a company whose shares are listed on BSE.
On 25 May 2011 the company allotted 31.77 lakh shares at Rs 50 each, about Rs 15.9 crore in all, to 44 non-promoter entities. SEBI analysed the allottees' bank statements and alleged that money from the company's own accounts came back to it as subscription money, so that the allotment looked like a fresh capital raise when part of it was not. The charge was fraud under section 12A of the SEBI Act and Regulations 3(b), (c), (d) and 4(1) of the PFUTP Regulations.
The company objected that it had not been shown the connection between itself and the allottees, and that the loans in question were genuine. The officer rejected the procedural objections and, on a balance of probabilities, found two chains. In the first, the company moved Rs 1.52 crore to Surface Finance Private Limited, which had paid Rs 30 lakh to two allottees who then paid the same sum to the company. In the second, Rs 10 lakh reached another allottee through a finance company.
The order concludes that the company funded the subscription to the extent of Rs 30 lakh and Rs 10 lakh respectively, in breach of section 12A and the cited PFUTP regulations. It imposes a penalty of Rs 5,00,000 under section 15HA, noting that the material did not quantify any gain or investor loss.
The record does not show whether the company or its directors were pursued further, whether the order was appealed, or how the remaining allottees were treated. No library technique fits the conduct, so the technique list is empty.
This library tags the matter as issuer-side fraud through round-tripped share-subscription funds, with no more specific library technique. The tagging is ours, not the regulator's.
For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.
Timeline
- 2022-08-25 SEBI adjudication order
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.