Latest news with #BBEs
Hans India
5 days ago
- Business
- Hans India
Sebi bars Wadhawan brothers from mkt
Mumbai: Capital markets regulator SEBI has banned Dewan Housing Finance Corporation Ltd's former Chairman and Managing Director Kapil Wadhawan, ex-director Dheeraj Wadhawan, and four others from the stock markets for up to five years and slapped a penalty of Rs 120 crore on them for diverting funds and fabricating books. They have also been barred from holding any key position in a listed company for up to five years. According to the SEBI investigation, the main culprits involved in the fraudulent scheme were Kapil Wadhawan and his brother Dheeraj, who have been fined Rs 27 crore each. Rakesh Wadhawan, who was Non-Executive Chairman, and Sarang Wadhawan, a former Non-Executive Director, were also involved through their roles on DHFL's board and face penalties of Rs 20.75 crore each. Besides, Harshil Mehta, who was Joint Managing Director & CEO and Santosh Sharma, a former CFO of the company, have been fined Rs 11.75 crore and Rs 12.75 crore, respectively. The SEBI has stated in its order that since 2006, DHFL, along with its promoters, directors, and key managerial personnel, have engaged and participated in an 'egregiously fraudulent scheme' to divert funds to 'Bandra Book Entities' (BBEs) linked to the promoters. DHFL's loans to BBEs rose to a staggering Rs 14,040.5 crore by March 31, 2019. The order states that the promoters issued huge unsecured loans to these entities despite the fact that they did not have any assets or business. These loans were also falsely recorded as retail housing investigation has found that the modus operandi involved was to first extend large unsecured loans to these BBEs, even though they had no net worth, assets, or cash flows to justify such exposure. Second, all standard loan appraisal processes were deliberately bypassed.
Time of India
6 days ago
- Business
- Time of India
Sebi bans DHFL's Kapil Wadhawan, Dheeraj Wadhawan, four more from securities market
NEW DELHI: Markets regulator Sebi on Tuesday barred Dewan Housing Finance Ltd 's former CMD Kapil Wadhawan , ex-director Dheeraj Wadhawan , and four others from the securities markets for up to five years for committing financial irregularities, diverting funds, and fabricating books. The others who have been prohibited by Sebi are -- Rakesh Wadhawan, who was non-executive chairman, Sarang Wadhawan, a former non-executive director, Harshil Mehta, joint managing director & CEO, and Santosh Sharma, a former CFO. Sebi also fined the six individuals Rs 120 crore. Kapil Wadhawan and Dheeraj Wadhawan have each been restrained from the securities markets for five years, while Rakesh Wadhawan and Sarang Wadhawan face a four-year ban, and Harshil Mehta and Santosh Sharma have been prohibited for three years, according to the Sebi order. During these periods, they cannot access the securities market, deal in securities in any manner, or hold any role such as director or key managerial personnel in listed companies, registered intermediaries, or public companies intending to raise funds from the market. Kapil Wadhawan and Dheeraj Wadhawan have each been fined Rs 27 crore, while Rakesh Wadhawan and Sarang Wadhawan face penalties of Rs 20.75 crore each. Harshil Mehta has been fined Rs 11.75 crore, and Santosh Sharma faces a total penalty of Rs 12.75 crore. In its 181-page order, Sebi noted that since 2006, DHFL , along with its promoters, directors, and key managerial personnel, have engaged and participated in an "egregiously fraudulent scheme" to divert funds to "Bandra Book Entities" (BBEs) linked to the promoters. By March 31, 2019, DHFL's loans to BBEs stood at Rs 14,040.50 crore. The BBEs were directly or indirectly connected to Kapil, Dheeraj Rakesh and Sarang, it added. As per the order, promoters issued huge unsecured loans to these entities despite their lack of assets or business, bypassing all due diligence, and falsely recording them as retail housing loans. The regulator found that the fraud operated in several steps. First, large unsecured loans were extended to these BBEs even though they had no net worth, assets, or cash flows to justify such exposure. Second, all standard loan appraisal processes were deliberately bypassed. Third, these weak intercorporate loans to related parties were misrepresented as retail housing loans, creating a false impression of the company's financial health for investors and other stakeholders. "To effect this elaborate deception, a fake virtual branch ('Bandra branch') and previously closed retail loan accounts were employed, alongside three different accounting software, camouflaging the BBE loans as retail housing loans. In the initial years, well over 30 per cent of all loans of DHFL were to these BBEs," Sebi noted. Despite the BBEs not making interest or principal payments, DHFL booked fictitious interest income, which allowed it to show increasing profits instead of losses between FY 2007-08 and FY 2015-16. These misleading financials misled shareholders and distorted DHFL's share price. According to Sebi, the main orchestrators of the fraudulent scheme were Kapil Wadhawan and his brother Dheeraj Wadhawan. Rakesh and Sarang Wadhawan were also involved through their roles on DHFL's board. The investigation found that loans worth Rs 5,662.44 crore were disbursed to 39 BBEs, of which 40 per cent was subsequently routed to 48 other entities connected to the promoters.
The Hindu
6 days ago
- Business
- The Hindu
DHFL case: SEBI bans Kapil, Dheeraj Wadhawan, 4 others from market; imposes ₹120 crore fine
Markets regulator SEBI has banned Dewan Housing Finance Corp Ltd's former CMD Kapil Wadhawan, ex-director Dheeraj Wadhawan, and four others from the securities markets for up to five years and imposed a penalty totalling ₹120 crore on them for diverting funds and fabricating books. Additionally, they have been restrained from holding any key position in a listed company for up to five years. Apart from Kapil and Dheeraj, restraints have been imposed on Rakesh Wadhawan, who was non-executive chairman, Sarang Wadhawan, a former non-executive director, Harshil Mehta, who was joint managing director and CEO, and Santosh Sharma, a former CFO. Also, the Wadhawans were the promoters of the housing finance company. In its 181-page order passed on Tuesday, SEBI noted that since 2006, DHFL, along with its promoters, directors, and key managerial personnel, have engaged and participated in an "egregiously fraudulent scheme" to divert funds to "Bandra Book Entities" (BBEs) linked to the promoters. By March 31, 2019, DHFL's loans to BBEs stood at ₹14,040.50 crore. The BBEs were directly or indirectly connected to Kapil, Dheeraj Rakesh and Sarang, it added. As per the order, promoters issued huge unsecured loans to these entities despite their lack of assets or business, bypassing all due diligence, and falsely recording them as retail housing loans. The regulator found that the fraud operated in several large unsecured loans were extended to these BBEs even though they had no net worth, assets, or cash flows to justify such exposure. Second, all standard loan appraisal processes were deliberately bypassed. Third, these weak intercorporate loans to related parties were misrepresented as retail housing loans, creating a false impression of the company's financial health for investors and other stakeholders. "To effect this elaborate deception, a fake virtual branch ('Bandra branch') and previously closed retail loan accounts were employed, alongside three different accounting software, camouflaging the BBE loans as retail housing loans. In the initial years, well over 30 per cent of all loans of DHFL were to these BBEs," SEBI noted. Despite the BBEs not making interest or principal payments, DHFL booked fictitious interest income, which allowed it to show increasing profits instead of losses between FY 2007-08 and FY 2015-16. These financials misled shareholders and distorted DHFL's share price. According to SEBI, the main orchestrators of the fraudulent scheme were Kapil and his brother Dheeraj. Further, Rakesh and Sarang Wadhawan were also involved through their roles on DHFL's board. The investigation found that loans worth ₹5,662.44 crore were disbursed to 39 BBEs, of which 40% was subsequently routed to 48 other entities connected to the promoters. Accordingly, SEBI has prohibited Kapil and Dheeraj from the securities markets for five years; while Rakesh and Sarang face a four-year ban; and Mehta and Sharma have been prohibited for three years. During these periods, they cannot access the securities market, deal in securities in any manner, or hold any role such as director or key managerial personnel in listed companies, registered intermediaries, or public companies intending to raise funds from the market. Kapil and Dheeraj have each been fined ₹27 crore, while Rakesh and Sarang face penalties of ₹20.75 crore each. Mehta has been ₹11.75 crore, and Sharma faces a total penalty of ₹12.75 crore. In September 2020, the regulator passed an interim order and imposed several restrictions on them.
Time of India
6 days ago
- Business
- Time of India
DHFL case: Sebi bans Kapil Wadhawan, Dheeraj Wadhawan, four others from mkt; imposes Rs 120-cr fine
New Delhi: Markets regulator Sebi has banned Dewan Housing Finance Corp Ltd's former CMD Kapil Wadhawan , ex-director Dheeraj Wadhawan , and four others from the securities markets for up to five years and imposed a penalty totalling Rs 120 crore on them for diverting funds and fabricating books. Additionally, they have been restrained from holding any key position in a listed company for up to five years. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program Apart from Kapil and Dheeraj, restraints have been imposed on Rakesh Wadhawan, who was non-executive chairman, Sarang Wadhawan, a former non-executive director, Harshil Mehta, who was joint managing director & CEO and Santosh Sharma, a former CFO. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Could Be the Best Time to Trade Gold in 5 Years IC Markets Learn More Undo Also, Wadhawans were the promoters of the housing finance company. In its 181-page order passed on Tuesday, Sebi noted that since 2006, DHFL, along with its promoters, directors, and key managerial personnel, have engaged and participated in an "egregiously fraudulent scheme" to divert funds to "Bandra Book Entities" (BBEs) linked to the promoters. By March 31, 2019, DHFL 's loans to BBEs stood at Rs 14,040.50 crore. Live Events The BBEs were directly or indirectly connected to Kapil, Dheeraj Rakesh and Sarang, it added. As per the order, promoters issued huge unsecured loans to these entities despite their lack of assets or business, bypassing all due diligence, and falsely recording them as retail housing loans. The regulator found that the fraud operated in several large unsecured loans were extended to these BBEs even though they had no net worth, assets, or cash flows to justify such exposure. Second, all standard loan appraisal processes were deliberately bypassed. Third, these weak intercorporate loans to related parties were misrepresented as retail housing loans, creating a false impression of the company's financial health for investors and other stakeholders. "To effect this elaborate deception, a fake virtual branch ('Bandra branch') and previously closed retail loan accounts were employed, alongside three different accounting software, camouflaging the BBE loans as retail housing loans. In the initial years, well over 30 per cent of all loans of DHFL were to these BBEs," Sebi noted. Despite the BBEs not making interest or principal payments, DHFL booked fictitious interest income, which allowed it to show increasing profits instead of losses between FY 2007-08 and FY 2015-16. These financials misled shareholders and distorted DHFL's share price. According to Sebi, the main orchestrators of the fraudulent scheme were Kapil and his brother Dheeraj. Further, Rakesh and Sarang Wadhawan were also involved through their roles on DHFL's board. The investigation found that loans worth Rs 5,662.44 crore were disbursed to 39 BBEs, of which 40 per cent was subsequently routed to 48 other entities connected to the promoters. Accordingly, Sebi has prohibited Kapil and Dheeraj from the securities markets for five years; while Rakesh and Sarang face a four-year ban; and Mehta and Sharma have been prohibited for three years. During these periods, they cannot access the securities market, deal in securities in any manner, or hold any role such as director or key managerial personnel in listed companies, registered intermediaries, or public companies intending to raise funds from the market. Kapil and Dheeraj have each been fined Rs 27 crore, while Rakesh and Sarang face penalties of Rs 20.75 crore each. Mehta has been fined Rs 11.75 crore, and Sharma faces a total penalty of Rs 12.75 crore. In September 2020, the regulator passed an interim order and imposed several restrictions on them.
Time of India
6 days ago
- Business
- Time of India
DHFL case: Sebi bans Kapil Wadhawan, Dheeraj Wadhawan, 4 others from mkt; imposes Rs 120-cr fine
Markets regulator Sebi has banned Dewan Housing Finance Corp Ltd's former CMD Kapil Wadhawan, ex-director Dheeraj Wadhawan, and four others from the securities markets for up to five years and imposed a penalty totalling Rs 120 crore on them for diverting funds and fabricating books. Additionally, they have been restrained from holding any key position in a listed company for up to five years. Apart from Kapil and Dheeraj, restraints have been imposed on Rakesh Wadhawan, who was non-executive chairman, Sarang Wadhawan, a former non-executive director, Harshil Mehta, who was joint managing director & CEO and Santosh Sharma, a former CFO. Also, Wadhawans were the promoters of the housing finance company. In its 181-page order passed on Tuesday, Sebi noted that since 2006, DHFL, along with its promoters, directors, and key managerial personnel, have engaged and participated in an "egregiously fraudulent scheme" to divert funds to "Bandra Book Entities" (BBEs) linked to the promoters. By March 31, 2019, DHFL's loans to BBEs stood at Rs 14,040.50 crore. The BBEs were directly or indirectly connected to Kapil, Dheeraj Rakesh and Sarang, it added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 11 Foods That Help In Healing Knee Pain Naturally Undo As per the order, promoters issued huge unsecured loans to these entities despite their lack of assets or business, bypassing all due diligence, and falsely recording them as retail housing loans. The regulator found that the fraud operated in several large unsecured loans were extended to these BBEs even though they had no net worth, assets, or cash flows to justify such exposure. Second, all standard loan appraisal processes were deliberately bypassed. Third, these weak intercorporate loans to related parties were misrepresented as retail housing loans, creating a false impression of the company's financial health for investors and other stakeholders. "To effect this elaborate deception, a fake virtual branch ('Bandra branch') and previously closed retail loan accounts were employed, alongside three different accounting software, camouflaging the BBE loans as retail housing loans. In the initial years, well over 30 per cent of all loans of DHFL were to these BBEs," Sebi noted. Despite the BBEs not making interest or principal payments, DHFL booked fictitious interest income, which allowed it to show increasing profits instead of losses between FY 2007-08 and FY 2015-16. These financials misled shareholders and distorted DHFL's share price. According to Sebi, the main orchestrators of the fraudulent scheme were Kapil and his brother Dheeraj. Further, Rakesh and Sarang Wadhawan were also involved through their roles on DHFL's board. The investigation found that loans worth Rs 5,662.44 crore were disbursed to 39 BBEs, of which 40 per cent was subsequently routed to 48 other entities connected to the promoters. Accordingly, Sebi has prohibited Kapil and Dheeraj from the securities markets for five years; while Rakesh and Sarang face a four-year ban; and Mehta and Sharma have been prohibited for three years. During these periods, they cannot access the securities market, deal in securities in any manner, or hold any role such as director or key managerial personnel in listed companies, registered intermediaries, or public companies intending to raise funds from the market. Kapil and Dheeraj have each been fined Rs 27 crore, while Rakesh and Sarang face penalties of Rs 20.75 crore each. Mehta has been fined Rs 11.75 crore, and Sharma faces a total penalty of Rs 12.75 crore. In September 2020, the regulator passed an interim order and imposed several restrictions on them. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
