SEBI v. SecureKloud Technologies Ltd and others (falsified accounts, 2022)

Judgment entered

✓ Checked against the primary document on October 8, 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.

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In December 2022 a SEBI whole-time member found that SecureKloud Technologies, a listed software company, booked fictitious revenue, overstated its accounts and moved Rs 3.83 crore to its chief executive. The company and three officials were barred from the market for one to three years and fined Rs 10 crore in total.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

—

Alleged gain

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Penalty as published

100m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

SEBI whole-time member Ananta Barua issued this final order on 16 December 2022. The noticees were SecureKloud Technologies Ltd (formerly 8K Miles Software Services Ltd), listed on BSE and NSE, its managing director and chief executive Suresh Venkatachari, R. S. Ramani and Gurumurthi Jayaraman, who were directors or officers of the company.

The case grew out of the company's statutory auditor Deloitte, which for the year 2018-19 reported irregularities and suspected fraud to the Ministry of Corporate Affairs in September 2019 and then resigned. A forensic review commissioned by the company and a later forensic audit for SEBI, reported in June 2022, followed. SEBI issued an interim order and show cause notice on 4 August 2022, which the Securities Appellate Tribunal partly modified on 7 September 2022 to let Mr Venkatachari continue as chief executive and to convert warrants, while the case was heard.

The order finds that the company manipulated its books, among other things by recognising fictitious revenue and receivables from customers including a 'Sutter Health Group', a 'Kaiser Research Lab' and 'Shire Lab Systems', and by routing money back in a manner it describes as round tripping. It finds that the company paid Rs 3.83 crore to Mr Venkatachari and concludes on balance of probabilities that this was siphoning, in breach of section 12A(c) of the SEBI Act and the PFUTP Regulations. It also finds that the company and Mr Venkatachari did not provide complete information to the auditors or SEBI, and that the company and directors broke listing-disclosure rules.

Directions: the company, Mr Venkatachari and Mr Ramani are restrained from the securities market for three years and Mr Jayaraman for one year, with further bars on holding director or key managerial posts of one year (six months for Mr Jayaraman). The company must recover Rs 3.83 crore from Mr Venkatachari within a year. Penalties under sections 15A(a), 15HA and 15HB total Rs 4 crore on the company, Rs 3 crore on Mr Venkatachari, Rs 2 crore on Mr Ramani and Rs 1 crore on Mr Jayaraman, Rs 10 crore in all.

The record does not show whether the order was appealed or the money recovered. It does not show how much the fictitious revenue came to in total from the part of the order summarised here, and it describes no criminal case.

This library tags the matter as misleading issuer disclosure. 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.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Misleading issuer disclosure — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-12-16 SEBI 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.

• SEBI order

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.