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The Securities and Exchange Board of India (SEBI) has barred the promoters of Dewan Housing Finance Corporation Ltd (DHFL) from accessing the securities market or even associating themselves with any listed company.
“The promoters of DHFL during the period from April 1, 2006 to March 31, 2019 namely — Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S Wadhawan, Pooja D Wadhawan, Wadhawan Holding Pvt Ltd, Wadhawan Consolidated Holding Pvt Ltd, Wadhawan Retail Venture Pvt Ltd and Wadhawan Global Capital Ltd (formerly known as Wadhawan Housing Pvt Ltd) — are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly,” SEBI said in its interim ex-parte order.
Also read: ‘DHFL used 2.6 lakh fraud a/cs in fake branch to siphon funds’
It also restrained them from associating themselves with any listed public company and any public company as directors or promoters which intends to raise money from the public or any intermediary registered with SEBI.
Referring to the initial report of the Transaction Auditor, SEBI noted that DHFL has entered into certain fraudulent transactions, which were shown as bonafide transactions in its published financial statements as well as corporate announcements disseminated in the public domain.
“…the initial report raises serious concerns over authenticity and reliability of DHFL’s financial statements for the period fiscal year 2007 to fiscal year 2019. This calls into question the “ true and fair” nature of the financial statements of the company,” the order said.
Also read: DHFL: ‘91 fictitious entities from a Mumbai branch behind fraud’
DHFL had raised a significant amount of ₹24,000 crore through public issue of debt securities during this period.
It further said that by indulging in such fraudulent transactions, which were shown as bonafide transactions in the published financial statements and by issuing corporate announcements in the public domain, the promoters of company have defrauded the investors in securities of DHFL.
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