Mumbai, Aug. 25 -- Mumbai: The Securities and Exchange Board of India (Sebi) on Tuesday barred Varanium Cloud Ltd (VCL) and its promoter Harshawardhan Sabale from the securities market for seven years and ordered Sabale to disgorge Rs.128.77 crore in alleged unlawful gains.

The regulator has also directed VCL to return Rs.62.51 crore that it found had been diverted from the proceeds of the company's initial public offering (IPO) and rights issue, along with 12% interest. Sebi said the money was transferred to related parties and other entities, including Rs.32.73 crore to Sabale.

Sebi's final order issued on Tuesday found that VCL had misrepresented its financial statements and disclosures, including through fictitious sales and purchas...