SEBI Gives Clearance To Tree House Education In Financial Misgivings Case

The reprieve for the company comes after a six-year long audit by Sebi following unsubstantiated allegations.

SEBI Gives Clearance To Tree House Education In Financial Misgivings Case

Sebi has given clearance toTree House Education & Accessories Ltd and its promoters.(File)

New Delhi:

 After a six-year long forensic audit, Securities and Exchange Board of India (SEBI) has given clearance to Tree House Education & Accessories Ltd, its promoters and other officials in a case related to alleged misstatements of the company's financials.

In its letter to Tree House Education dated October 19, Sebi's corporate finance investigation department has written to the promoters that no action would be taken against the company after the forensic audit initiated by the regulator showed no instances of any financial misgivings.

"The forensic audit and investigation of Sebi now completed. In furtherance of the terms and reference to the forensic auditor and consequent investigation of Sebi, no action is proposed to be taken against you," the regulator said in its letter.

The reprieve for the company comes after a six-year long audit by Sebi following unsubstantiated allegations.

Following the allegations in 2016, Sebi had initiated an investigation for the period from April 2011 to June 2017. After this, Sebi in its interim order in 2018, had restrained Tree House, it's promoters -- Rajesh Bhatia, Geeta Bhatia, Giridharilal S Bhatia -- and its two other officials from accessing the securities market and dealing in any securities in a matter related to alleged misstatements of the financials of the firm.

The regulator had directed NSE to appoint an independent auditor or audit firm to conduct a detailed forensic audit of the books of accounts of Tree House.

The auditor was asked to verify manipulation of books of accounts and misrepresentation, including of financials and business operations of Tree House.

Also, the auditor was required to verify any wrongful diversion or siphoning of the company funds through 'related party transaction'.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

.