SEBI has imposed penalties totaling ₹74 lakh on Manpasand Beverages Ltd (MBL), known for Mango Sip and its top executives, including Abhishek Singh, for financial misstatements and market violations. The regulatory action follows allegations of GST fraud and misreporting, highlighting serious lapses in corporate governance at the Vadodara-based mango drink giant that produces Mango Sip.
The Securities and Exchange Board of India (SEBI) has dealt a severe blow to Manpasand Beverages Ltd (MBL), imposing hefty penalties totaling ₹74 lakh and banning the company’s top brass from the securities market for three years. The Vadodara-based firm, known for its popular mango drink Mango Sip, and its executives, including Abhishek Singh, were found guilty of manipulating financial statements and misleading investors.
The regulatory action comes after a tumultuous period for Manpasand Beverages, marred by allegations of GST fraud and financial irregularities dating back to 2019. SEBI’s 55-page order also slaps fines of ₹17 lakh each on Dhirendra Singh, Abhishek Singh, and others, demanding compliance within 45 days.
SEBI’s crackdown exposes a deep-seated malpractice within the company, which was previously audited by Deloitte until their resignation in May 2018. The scandal escalated further with the arrests of MD Abhishek Singh and others in 2019 on charges of a ₹40 crore GST fraud, casting a shadow over Manpasand Beverages’ operations.
“The financial statements for 2018-19 and 2019-20 were manipulated, presenting a false picture of the company’s financial health,” stated SEBI Whole Time Member Ashwani Bhatia, underscoring the severity of the deceit uncovered.
Further exacerbating the company’s troubles, SEBI’s investigation revealed discrepancies in the utilization of proceeds from a Qualified Institutional Placement (QIP) conducted in September 2016. The misuse of funds and non-compliance with listing norms further underscored the extent of corporate mismanagement within MBL.
In response to mounting complaints and concerns raised by stakeholders, SEBI appointed Chokshi & Chokshi LLP to conduct a forensic audit of Manpasand Beverages’ financial statements for fiscal years 2018-19 and 2019-20. The audit exposed systemic failures and deliberate misreporting, tarnishing the company’s reputation and investor confidence.
The fallout from the scandal continues to reverberate through the corporate landscape, prompting calls for stricter regulatory oversight and enhanced transparency measures in India’s capital markets
