Lloyds Enterprises paid ₹1.28 crore, while Mr Gupta and Mr Sohoni paid ₹1.44 crore each towards the settlement of the proceedings.
The matter arose after SEBI received an alert report from BSE Ltd on 21 November 2023 regarding irregularities in advances reported by Lloyds Enterprises. The regulator subsequently conducted an investigation into the matter.
SEBI's investigation found that between FY16-17 and FY20-21, Lloyds Enterprises did not recognise expected credit losses on advances of ₹144.82 crore outstanding from Cheerful Trade & Realty Developers Pvt Ltd (CTRDPL) and Triumph Trade & Properties Developers Pvt Ltd (TTPDPL), as required under IND-AS 109. As a result, the advances were allegedly overstated in the company's financial statements.
The regulator further found that the ₹144.82 crore had been transferred to CTRDPL and TTPDPL in FY06-07 for the benefit of promoters and their related entities. The funds were lent at nil interest and without any agreement, which SEBI said caused a loss to Lloyds Enterprises. The funds were allegedly misutilised from FY2006-07 to FY2022-23.
SEBI also observed that CTRDPL and TTPDPL were related parties of Lloyds Enterprises but were not disclosed as related parties in the company's annual reports for FY16-17 to FY22-23. Mr Gupta was the MD, and Mr Sohoni was the CFO during the relevant period.
Further, against the advances of ₹144.82 crore, Lloyds Enterprises received a 7% partnership interest in Lloyds Metals & Minerals Trading LLP in FY23-24. The LLP had a total net worth of ₹5,852.64 crore in FY23-24, according to the SEBI order.
The alleged violations involved provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations). The proceedings also covered provisions relating to the responsibilities of Mr Gupta and Mr Sohoni under the LODR Regulations.
The applicants filed suo-motu settlement applications with SEBI. Following meetings with the regulator's internal committee(IC) in January and March 2026, revised settlement terms were considered by the high-powered advisory committee (HPAC), which recommended the settlement on 27 May 2026. The panel of whole-time members (WTMs) approved the terms on 15 July 2026.
SEBI issued notices of demand on 21 July 2026. The applicants subsequently informed SEBI on 5 and 6 August 2026 that the settlement amounts had been remitted, and the regulator confirmed receipt of the payments.
Following the payment, SEBI ordered that it would not initiate enforcement action against the applicants for the violations covered by the settlement.
However, the regulator retained the right to take appropriate action if any representation made during the settlement proceedings is later found to be untrue, if the applicants breach the undertakings or waivers submitted during the process, or if any amount due under the settlement terms remains unpaid.
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