SEBI bars ex-DHFL bosses from securities market for this reason
SEBI has barred Kapil and Dheeraj Wadhawan, ex-bosses of DHFL, along with four top executives from the securities market for up to five years.
The reason? They were caught channeling a massive ₹14,040 crore in unsecured loans to companies linked to themselves—disguised as regular home loans.
Wadhawans set up fake 'Bandra branch' to hide tracks
According to SEBI's investigation, the Wadhawans set up a fake "Bandra branch," closed loan accounts, and juggled multiple accounting systems to hide their tracks.
About ₹5,662 crore went into 39 shell entities, with nearly half that money flowing back into promoter-linked firms.
This trickery let DHFL fake its profits and mislead investors.
As punishment: Kapil and Dheeraj get five-year bans and ₹27 crore fines each; other family members and ex-execs face bans from three to four years plus hefty fines too.
These penalties follow interim restrictions first put in place back in 2020.