Archive · 14 Aug 2025
SEBI Bars Wadhawans, Levies ₹120 Crore Fine for Fund Diversion
SEBI, the financial regulator, has penalized former DHFL executives for financial misconduct.
These individuals, including Kapil and Dheeraj Wadhawan, diverted funds to related entities and falsified records.
They have been banned from the stock market for up to five years and fined a total of ₹120 crore.
The investigation revealed a scheme where large, unsecured loans were given to entities without proper justification.
The aim is to protect investors and ensure fair market practices.
SEBI banned Kapil and Dheeraj Wadhawan, and four others, from stock markets for up to five years.
They are also barred from holding key positions in listed companies for the same duration.
Penalties totaling ₹120 crore were imposed for fund diversion and fabricating financial records.
The fraudulent scheme diverted funds to Bandra Book Entities (BBEs) linked to the promoters.
DHFL's loans to BBEs reached ₹14,040.5 crore by March 31, 2019.
- Who
- Kapil and Dheeraj Wadhawan, Rakesh Wadhawan, Sarang Wadhawan, Harshil Mehta, and Santosh Sharma.
- What
- SEBI penalized former DHFL executives for fund diversion and record fabrication.
- When
- Since 2006.
- Where
- Within DHFL.
- Why
- To address fund diversion and fabrication of financial records.
- Entities Involved
- DHFL, Bandra Book Entities (BBEs)
- Total Penalty
- ₹120 crore
- Key Figures
- Kapil Wadhawan, Dheeraj Wadhawan
- Fund Diversion to BBEs
- ₹14,040.5 crore
- Bans Imposed
- Up to 5 years
- Fraudulent Scheme Duration
- Since 2006
Sources
Sebi Cracks Down on DHFL 'Bandra Branch' Fraud: Wadhawans, Ex-Top Executives Banned; Rs 120 Crore Penalty Imposed
SEBI bans Wadhawan brothers from market and slaps them with Rs 120 crore fine in DHFL fraud case
SEBI bans Wadhawans, imposes ₹120-crore penalty for DHFL fraud
