SEBI Orders Attachment of Bank Accounts and Securities of Former DHFL Promoters

SEBI Orders Attachment of Bank Accounts and Securities of Former DHFL Promoters

The Securities and Exchange Board of India (SEBI) has taken decisive action against the former promoters of Dewan Housing Finance Corp Ltd (DHFL), Dheeraj Wadhawan and Kapil Wadhawan. The regulator has ordered the attachment of their bank accounts, shares, and mutual fund holdings to recover dues amounting to over ₹22 lakh. This move comes after the Wadhawan brothers failed to pay the fine imposed on them by SEBI in July last year for violating disclosure norms.

In two separate attachment notices issued recently, SEBI has directed the attachment of bank accounts, demat accounts, and mutual fund folios belonging to the Wadhawans. The pending dues of ₹10.6 lakh each from the brothers include the initial penalty amount, interest, and recovery costs.

Back in July 2023, SEBI penalised the Wadhawans, who were once promoters of DHFL (now known as Piramal Finance), for flouting disclosure norms. Kapil Wadhawan served as the Chairman and Managing Director of DHFL, while Dheeraj Wadhawan held a non-executive director position. Both were active board members of DHFL.

The SEBI order stems from an investigation into the transfer of shares held by DHFL in DHFL Pramerica Life Insurance (formerly DLF Pramerica Life Insurance) to its wholly owned subsidiary, DHFL Investments, and other related transactions. The investigation period covered February to March 2017.

SEBI found that the Wadhawan brothers provided inadequate information in the postal ballot notice issued by the firm. Consequently, the regulator believes there is a risk that the defaulters may dispose of the amounts in their bank accounts and securities held in demat accounts, potentially delaying or obstructing the recovery process.

While debits have been restricted, credits remain permissible. In January, SEBI issued demand notices to Dheeraj and Kapil, urging them to pay the outstanding dues. The regulator has also warned of potential asset attachment and arrest if payment is not made within 15 days.