Overview

• Kapil and Dheeraj Wadhawan each receive five-year market bans with Rs 27 crore fines, while Rakesh and Sarang Wadhawan face four-year bans and Rs 20.75 crore penalties each and Harshil Mehta and Santosh Sharma incur three-year prohibitions with fines of Rs 11.75 crore and Rs 12.75 crore respectively.
• SEBI’s 181-page ruling finds that by March 31, 2019, DHFL’s loans to Bandra Book Entities totalled Rs 14,040.50 crore, including Rs 5,662.44 crore disbursed to 39 BBEs with about 40% rerouted to 48 other promoter-linked firms.
• Executives employed a fake virtual branch in Bandra, three separate accounting systems and closed retail accounts to disguise intercorporate loans as retail housing loans and book fictitious interest between FY2008 and FY2016.
• The order identifies Kapil and Dheeraj Wadhawan as the chief architects of the diversion, with Rakesh and Sarang Wadhawan implicated via board roles and Harshil Mehta and Santosh Sharma facilitating the scheme in their executive capacities.
• These civil sanctions complement ongoing Enforcement Directorate investigations and asset-recovery actions under the PMLA, which target alleged diversions of over Rs 34,600 crore.