SEBI v. Balasore Alloys Ltd and others (bogus purchases, 2023)

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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On 18 August 2023 a SEBI adjudicating officer penalised Balasore Alloys Rs 10,00,000 and two of its executives Rs 5,00,000 each over bogus purchases that overstated its costs in at least Rs 18.42 crore of its financial statements. A fourth noticee was cleared.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

—

Total relief

—

Alleged gain

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Penalty as published

2m 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

A SEBI adjudicating officer decided this matter on 18 August 2023. The noticees are Balasore Alloys Limited, a listed Odisha company, and three executives: Anil Kumar Surekha, Rajendra Kumar Parakh and Nikunj Pansari. The review period ran from April 2014 to March 2019.

SEBI opened the matter after the Central Economic Intelligence Bureau passed on findings from an income tax search at the company. SEBI alleged that the company's financial statements were misstated through bogus purchases booked in the name of a supplier and through a coke transaction, and that the company and its senior officers thereby breached the PFUTP Regulations and listing rules.

The order finds that the company's bogus purchases misrepresented its financial statements by at least Rs 18.42 crore and that the company, Mr Surekha and Mr Parakh were liable under Regulation 4 of the PFUTP Regulations, section 12A of the SEBI Act and the listing regulations. It found nothing established against Mr Pansari, who held a finance director post for a later period and whose tenure did not overlap with the transactions found to be bogus.

The penalties were Rs 10,00,000 on the company and Rs 5,00,000 on each of Mr Surekha and Mr Parakh, a total of Rs 20,00,000, under sections 15HA and 15HB of the SEBI Act and section 23H of the SCRA. The officer noted that no gain could be quantified and that there were no earlier violations on record.

The record does not show any investor loss, whether the tax findings led to other proceedings, or whether the noticees appealed. The order mentions 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. 2023-08-18 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.