PC Jeweller Pays Rs7.23 Crore To Settle a Case of Non-submission of Loan Defaults
Moneylife Digital Team 27 January 2025
PC Jeweller Ltd paid Rs7.23 crore to Securities and Exchange Board of India (SEBI) to settle a case related to allegations of non-disclosure and delayed disclosure of critical information to loan defaults.  
 
The jewellery retailer opted to settle the case without admitting or denying SEBI findings, as outlined in the settlement order. SEBI initiated adjudication proceedings against the company for alleged violations of the Listing Obligations and Disclosure Requirements (LODR) Regulations. A show cause notice was issued to PC Jeweller on 29 February 2024.  
 
The notice alleged that PC Jeweller failed to disclose or delay the disclosure of important information, including quarterly reports and the classification of loans as non-performing assets (NPAs). The company had also submitted a resolution plan to its lenders which failed. Subsequent attempts at revising the plan were also unsuccessful.  
 
Further allegations pointed to the rejection of the resolution plan and the company's decision to file a writ petition in the Delhi High Court (HC) regarding this rejection. SEBI findings also highlighted petitions filed by the State Bank of India (SBI) in the debt recovery tribunal (DRT) and the debt recovery appellate tribunal (DRAT).  
 
In addition, SEBI noted that the company received loan recall notices from banks, faced the seizure of guarantor properties and became involved in the corporate insolvency resolution process (CIRP). 
 
Furthermore, PC Jeweller was accused of providing misleading information to investors and stock exchanges, exacerbating its compliance issues.  
 
Amid these allegations, PC Jeweller decided to resolve the matter through a settlement. The company remitted Rs7.23 crore to SEBI during the pending adjudication proceedings, marking the conclusion of the regulatory process.  
 
In its settlement order, SEBI stated, "In view of the acceptance of the settlement terms and the receipt of the settlement amount... the instant adjudication proceedings initiated against the noticee vide show cum noticee (SCN)  dated 29 February 2024, are disposed of."  
 
However, SEBI says it retains the authority to initiate or resume enforcement actions if the company's statements made during the settlement process are found to be false or if any settlement conditions are violated.
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