Sebi pulls up Kirloskar Industries Promoters for fraud
The markets regulator has charged promotors of Kirloskar Industries, Atul & Rahul Kirloskar with fraud in a decade-old case of the promoter group selling a 13.5% stake in the then-ailing company KBL to Kirloskar Industries Ltd, harming the interests of minority investors. In a show-cause notice to the six promoters of KBL and two others, Sebi alleged that the promoter group was aware of the precarious financial condition of KBL when these shares were sold, committing fraud on minority shareholders of Kirloskar Industries. The notice was sent in December 2019. As reported in media, Sebi’s assessment is that the ill-gotten gains in the transaction could be in excess of ₹350 crore, which includes the value of the sale transaction and profit The promoter group on October 6, 2010 sold 10.72 million shares of KBL worth ₹275 crore in the company to Kirloskar Industries. Sebi has charged the individual promoters of KBL and two others under the Prevention of Fraud and Unfair Trade Practice