Case Details

This SEBI Final Order concerns Mr. Rajendra Pathak (PAN: AQBPP0893P) in the matter of K-Lifestyle & Industries Limited (KLIL). The order number is not explicitly stated but was issued on May 27, 2026, by Quasi-Judicial Authority Biju S. in Mumbai. The matter was remanded back to SEBI by the Securities Appellate Tribunal (SAT) vide its order dated July 10, 2025, in Appeal No. 158 of 2025. The investigation period covered by the original Forensic Audit Report (FAR) was from April 01, 2015, to December 31, 2017. The financial impact of the case is that the previously imposed monetary penalty of INR 6 Lakh on the Noticee from the December 21, 2021, order has been set aside, and no penalty or directions are issued against him in this final order.

Persons Involved

The key individual involved is Mr. Rajendra Pathak, the Noticee, who was alleged to have been the Chief Financial Officer (CFO) of K-Lifestyle & Industries Limited. The order was passed by Biju S., the Quasi-Judicial Authority at SEBI. The Forensic Auditor who prepared the FAR is not named. The Authorized Representative (AR) of the Noticee represented him in hearings before SEBI.

Violations and Allegations

The original Show Cause Notice (SCN) dated August 18, 2020, alleged that KLIL failed to present true and fair financial statements and executed non-genuine transactions, amounting to misrepresentation of accounts and misuse of company funds. Specifically against Mr. Pathak, it was alleged that as the CFO, he approved the financial results for FY 2015-16, 2016-17, and 2017-18, thereby violating Regulation 33(2)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR). This regulation requires the CFO to certify that financial results placed before the board do not contain any false or misleading statement or omit material facts. The SCN also initially included allegations of violations of the SEBI Act and PFUTP Regulations, but these were dropped in the December 2021 order and were not revisited in this remand proceeding.

Penalties, Settlement Terms & Rulings

The SEBI order dated December 21, 2021, had imposed a monetary penalty of INR 6 Lakh on Mr. Pathak under Section 15HB of the SEBI Act, 1992. This order was challenged before SAT. The Hon'ble SAT, in its order dated July 10, 2025, set aside the 2021 order against Mr. Pathak, citing a violation of the principles of natural justice, and remanded the matter back to SEBI to pass an appropriate order after hearing him. The final ruling in this order dated May 27, 2026, is that all allegations against Mr. Pathak are unsubstantiated. The SCN is disposed of with no order for directions or monetary penalty.

Actions, Compliance, and Future Obligations

No corrective actions, future obligations, or compliance measures are imposed on Mr. Pathak by this order, as he has been exonerated. The order disposes of the SCN against him with no adverse findings.

Final Ruling and Enforcement

The final decision is that the allegations against Mr. Rajendra Pathak do not warrant any directions or monetary penalty. The order comes into force immediately. It must always be read along with the SEBI order dated December 21, 2021, which contained findings against the company and its directors that were not challenged and had attained finality. A copy of the order is to be served on the Noticee.