SEBI v. Family Care Hospitals Limited and others (misstated financial statements, 2025)

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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A SEBI adjudicating officer found that Family Care Hospitals and its senior officers published financial statements that left out related-party dealings and overstated profit by about Rs 3.86 crore, a fraud under the PFUTP Regulations, and penalised the company, its managers and its audit committee members. The penalties were small, Rs 2 lakh to Rs 5 lakh per provision.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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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.

What is alleged to have happened

On 3 June 2025 a SEBI adjudicating officer issued an order on Family Care Hospitals Limited and eleven of its present and former directors and officers, following a complaint about its accounts. The investigation covered April 2020 to March 2023. The noticees included the managing director Pandoo Prabhakar Naig, the former managing director and chief executive Gautam Mohan Deshpande, the former whole-time director Sowmya Gautam Deshpande, the chief financial officer Amit Satishchand Tyagi, and independent directors and audit committee members.

The show cause notice of 8 July 2024 alleged misstatements in the company's financial statements and listing-rule breaches. The officer found that the company did not show two related companies as related parties in its 2022-23 report, concealed purchases, sales and deposits with related parties in several years, and made no provision or contingent liability disclosure for about Rs 3.86 crore of rent arrears ordered by a court, so that profit for 2021-22 was overstated. The CEO and CFO certifications were also found wrong, and some stock exchange filings were late by one to 67 days.

The officer held that the published statements did not give a true and fair view, which he treated as a fraud under the PFUTP Regulations (Regulation 4(2)(f), (k) and (r)) together with listing-rule violations. He held the managing director, the former executives, the chief financial officer and the audit committee members responsible, rejecting arguments that they were not involved day to day or that the notice was barred by an earlier order of March 2024 on the company. He gave one short-tenure director the benefit of doubt and imposed nothing on him.

Penalties under sections 15A(b), 15HA and 15HB of the SEBI Act were imposed on eleven noticees. For the company they were Rs 2 lakh, Rs 5 lakh and Rs 2 lakh under the three sections, and the audit committee members were penalised in small sums, mostly Rs 2 lakh each. The order's table is laid out so that some individual figures cannot be read with certainty, so this record states no total. There was no market ban.

The record does not show investor losses, any gain to the noticees, whether anyone appealed, or whether the penalties were paid. The order is a civil penalty, not a criminal conviction.

This library tags the matter as misleading issuer disclosure (financial statement fraud). 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. 2025-06-03 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
• Order (PDF)

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.