Financial Regulator Takes Action Against DHFL Executives

In a significant move, the Securities and Exchange Board of India (Sebi) has imposed a five-year ban on Kapil Wadhawan, former CMD of Dewan Housing Finance Corp Ltd (DHFL), and his brother Dheeraj Wadhawan, along with four others, from the securities markets. A collective fine of Rs 120 crore has been levied for their involvement in fund diversion and fraudulent accounting practices.

The Scheme Unveiled

An elaborate investigation revealed that since 2006, DHFL, under the guidance of its promoters and key personnel, engaged in a fraudulent scheme to divert funds to entities linked to the promoters, misleading stakeholders about the company's financial health.

Penalties and Restrictions

Aside from the market ban, the individuals are prohibited from holding any significant positions in listed companies. The fines range up to Rs 27 crore for the main orchestrators of the scheme, with varying amounts for the others involved.