Mangalam Global Enterprise Ltd (MGEL) has settled a case with the market regulator Securities and Exchange Board of India (SEBI) after eight individuals paid a total settlement amount of about ₹1.04 crore, without admitting or denying the findings.
The
settlement order, issued on 30 March 2026, brings to a close proceedings initiated through a show-cause notice (SCN) dated 10 February 2025. The action followed a SEBI investigation into alleged financial misstatements and corporate governance lapses at MGEL.
Those covered under the settlement include: independent directors Manish Bagadia, Madhusudan Garg, Praveen Kumar Gupta, Sarika Modi, Shubhang Mittal and Anilkumar Agrawal, along with compliance officers Vrunda Patel and Rutu Shah.
SEBI’s probe had prima facie observed that the company’s books of accounts were manipulated or misrepresented. The investigation examined possible violations under the SEBI Act, the Securities Contracts (Regulation) Act and key regulations, including the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) and the Listing Obligations and Disclosure Requirements (LODR).
According to the findings, MGEL and its officials were alleged to have published misstated financials, passed fictitious accounting entries, and made misleading disclosures relating to related-party transactions. The regulator also flagged alleged diversion of funds to promoter group entities. These actions were seen as misleading investors and influencing trading in the company’s shares at unrealistic prices.
The order also points to lapses by the six independent directors, who were found to have failed in exercising due diligence in discharging their responsibilities under LODR norms and the Companies Act, 2013. The two compliance officers were similarly held responsible for shortcomings in ensuring regulatory compliance and accurate disclosures.
All eight individuals had filed settlement applications in April 2025 under SEBI’s Settlement Proceedings Regulations, 2018. After deliberations with SEBI internal committee(IC) and the high-powered advisory committee (HPAC), revised terms were finalised and approved.
Under the settlement, Mr Bagadia , Mr Garg and Mr Gupta paid ₹18.85 lakh each, while Ms Modi , Mr Mittal , Mr Agarwal , Ms Patel and Ms Shah paid ₹9.42 lakh each, aggregating to about ₹1.04 crore. The amount was remitted on 6 March 2026, and SEBI has confirmed receipt.
SEBI has clarified that the settlement is without prejudice to its rights. The regulator may initiate fresh action if any misrepresentation is discovered, if settlement conditions are breached, or if new violations come to light.
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