MRN Chamundi Settles with SEBI Over Companies Act Violations

MRN Chamundi Canepower and Biorefineries resolved alleged Companies Act violations with SEBI by paying Rs 56 lakh for settlement. The violations involved improper share allotments by merged entities. A compounding petition with NCLT led to negotiations and a final settlement approval by SEBI's High Powered Advisory Committee.

MRN Chamundi Canepower and Biorefineries has reached a settlement with the Securities and Exchange Board of India (SEBI) over alleged breaches of the Companies Act after a payment of Rs 56 lakh. This follows allegations of improper equity share allotments by entities merged into MRN Chamundi.

The procedural deviations dated back to the financial years 2005-06 through 2013-14, involving Nirani Sugars and Shri Sai Priya Sugars, which improperly allotted shares to more than 49 individuals, contravening the Companies Act 1956. Upon merging with MRN Chamundi, the company provided an exit option for eligible shareholders, resolving the allotment issues.

NCLT's Bengaluru bench handled the compounding petition which concluded with a Rs 64.88 lakh fee. Negotiations with SEBI led to the acceptance of revised terms and a Rs 56 lakh settlement. Separately, Quadrant Future Tek resolved delayed share transaction disclosures with a Rs 3 lakh fee.