SEBI Imposes Rs10 Lakh Penalty on Starlog Enterprises and MD Saket Agarwal for Multiple Regulatory Violations

Moneylife Digital Team 30 September 2025

Investor Interest

Market regulator Securities and Exchange Board of India (SEBI) imposed a total penalty of Rs10 lakh on Starlog Enterprises Ltd (SEL) and its managing director and chief executive officer (CEO), Saket Agarwal.

Of this, Rs9 lakh is to be paid jointly and severally by SEL and Mr Agarwal, while SEL alone has been penalised Rs 1 lakh. The action follows SEBI’s investigation into multiple compliance lapses and misstatements in the company’s financial reporting.

SEL, listed on the Bombay Stock Exchange (BSE), came under scrutiny following a complaint and a review of its financial statements for FY16-17 to FY21-22. A forensic audit, initiated on 23 September 2022, examined the company’s records during this period. Mr Agarwal has served as SEL’s MD since September 2017 and was CEO throughout the investigation period.

SEBI found that SEL delayed recognising impairment of its investment in Alba Asia Pvt Ltd, which should have been recorded in FY18-19 instead of FY19-20, resulting in understatement of FY18-19 losses by Rs74.69 crore. Consequently, SEL’s financial statements failed to present a true and fair view, violating the PFUTP Regulations.

The investigation also revealed that SEL failed to attach the secretarial audit report of its subsidiary, Starlift Services Pvt Ltd, in FY21-22 and did not appoint independent directors to its three unlisted material subsidiaries. The company’s claim of COVID-19 disruptions was rejected due to lack of corrective action.

Additional lapses included failure to appoint a company secretary in FY17–18, non-filing of the reconciliation report under Regulation 55A for March 2017 and non-maintenance of a structured digital database (SDD) in FY21-22 as required under the PIT Regulations. SEBI dismissed all excuses related to CIRP or the pandemic.

Mr Agarwal, who certified the FY18-19 financials as 'true and fair', while attending all audit committee meetings during FY20–22, was held responsible for delayed impairment, misrepresentation in FY18-19 financials, non-attachment of the secretarial audit report, non-appointment of independent directors, failure to appoint a company secretary and non-maintenance of SDD.

This penalty underlines SEBI commitment to enforcing strict compliance with accounting standards, corporate governance and disclosure norms, ensuring that listed entities maintain transparency and protect investor interests.

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