SEBI issues recovery notice to former DHFL promoter Dheeraj Wadhawan over ₹28.62 crore penalty
According to the recovery certificate dated July 7, 2026, SEBI has directed Wadhawan to pay ₹28.62 crore within 15 days of receipt of the notice.
- Jul 7, 2026,
- Updated Jul 7, 2026 7:39 PM IST
The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings against former Dewan Housing Finance Corporation Ltd (DHFL) promoter Dheeraj Wadhawan, issuing a demand notice seeking payment of ₹28.62 crore, including a penalty, interest and recovery costs. The action follows a regulatory order passed last year in connection with the DHFL matter and gives Wadhawan 15 days to clear the outstanding dues.
According to the recovery certificate dated July 7, 2026, SEBI has directed Wadhawan to pay ₹28.62 crore within 15 days of receipt of the notice. The amount comprises a ₹27 crore penalty imposed through a Whole Time Member (WTM) order dated August 12, 2025, ₹1.62 crore in interest calculated from February 2026 to July 2026 at 1% per month, and ₹1,000 towards recovery costs.
The notice has been issued under Section 28A of the SEBI Act, 1992, read with Section 23JB of the Securities Contracts (Regulation) Act, 1956, and Section 222 of the Income Tax Act, 1961, which empower the regulator to recover unpaid dues.
SEBI said the dues may be paid through direct bank transfer or via the online recovery payment facility available on its website. The regulator has warned that failure to pay within the stipulated period will result in recovery proceedings being initiated in accordance with the law.
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Recovery powers invoked
The recovery notice details the measures available to SEBI in case of non-payment. These include attachment and sale of movable property, attachment of bank accounts, attachment and sale of immovable property, arrest and detention in prison, and the appointment of a receiver to manage the defaulter's movable and immovable assets.
The regulator has also advised Wadhawan to furnish confirmation of any payment made in the prescribed format to enable the amount to be accounted for against the outstanding dues.
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Restrictions on assets
SEBI has cautioned that any direct or indirect transfer of property or money held in bank accounts to a spouse, minor child or son's wife after August 12, 2025, without adequate consideration, would be deemed to be the defaulter's property or money for the purpose of recovery.
The notice further states that, upon service of the demand notice, Wadhawan is not permitted to mortgage, lease, charge or otherwise deal with any of his properties without prior approval from the Recovery Officer. Any such transfer carried out without permission would be treated as void under the applicable recovery provisions.
The regulator also noted that Wadhawan would continue to remain liable for any additional interest, costs, charges and expenses incurred during the recovery proceedings until the dues are fully recovered.
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Market institutions alerted
SEBI has simultaneously sent copies of the recovery notice to CDSL, NSDL and all mutual funds in India, directing them to immediately furnish details of Wadhawan's holdings. The institutions have also been instructed to inform the Recovery Officer if any request for sale or redemption of his holdings is received after the date of the notice of demand.
The recovery action marks the enforcement stage of SEBI's proceedings arising from the August 2025 order. By invoking its statutory recovery powers, the regulator has indicated that it is prepared to pursue legal measures, including asset attachment and other recovery mechanisms, if the outstanding amount is not paid within the prescribed timeline.
The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings against former Dewan Housing Finance Corporation Ltd (DHFL) promoter Dheeraj Wadhawan, issuing a demand notice seeking payment of ₹28.62 crore, including a penalty, interest and recovery costs. The action follows a regulatory order passed last year in connection with the DHFL matter and gives Wadhawan 15 days to clear the outstanding dues.
According to the recovery certificate dated July 7, 2026, SEBI has directed Wadhawan to pay ₹28.62 crore within 15 days of receipt of the notice. The amount comprises a ₹27 crore penalty imposed through a Whole Time Member (WTM) order dated August 12, 2025, ₹1.62 crore in interest calculated from February 2026 to July 2026 at 1% per month, and ₹1,000 towards recovery costs.
The notice has been issued under Section 28A of the SEBI Act, 1992, read with Section 23JB of the Securities Contracts (Regulation) Act, 1956, and Section 222 of the Income Tax Act, 1961, which empower the regulator to recover unpaid dues.
SEBI said the dues may be paid through direct bank transfer or via the online recovery payment facility available on its website. The regulator has warned that failure to pay within the stipulated period will result in recovery proceedings being initiated in accordance with the law.
MUST READ: Got 500,000 followers? SEBI wants to classify you as a 'celebrity' for financial ads
Recovery powers invoked
The recovery notice details the measures available to SEBI in case of non-payment. These include attachment and sale of movable property, attachment of bank accounts, attachment and sale of immovable property, arrest and detention in prison, and the appointment of a receiver to manage the defaulter's movable and immovable assets.
The regulator has also advised Wadhawan to furnish confirmation of any payment made in the prescribed format to enable the amount to be accounted for against the outstanding dues.
MUST READ: Rajesh Exports case: NFRA begins probe after Sebi flags alleged ₹15.15 lakh crore mismatch
Restrictions on assets
SEBI has cautioned that any direct or indirect transfer of property or money held in bank accounts to a spouse, minor child or son's wife after August 12, 2025, without adequate consideration, would be deemed to be the defaulter's property or money for the purpose of recovery.
The notice further states that, upon service of the demand notice, Wadhawan is not permitted to mortgage, lease, charge or otherwise deal with any of his properties without prior approval from the Recovery Officer. Any such transfer carried out without permission would be treated as void under the applicable recovery provisions.
The regulator also noted that Wadhawan would continue to remain liable for any additional interest, costs, charges and expenses incurred during the recovery proceedings until the dues are fully recovered.
MUST READ: Cult.fit files DRHP with SEBI for to launch its IPO; check details
Market institutions alerted
SEBI has simultaneously sent copies of the recovery notice to CDSL, NSDL and all mutual funds in India, directing them to immediately furnish details of Wadhawan's holdings. The institutions have also been instructed to inform the Recovery Officer if any request for sale or redemption of his holdings is received after the date of the notice of demand.
The recovery action marks the enforcement stage of SEBI's proceedings arising from the August 2025 order. By invoking its statutory recovery powers, the regulator has indicated that it is prepared to pursue legal measures, including asset attachment and other recovery mechanisms, if the outstanding amount is not paid within the prescribed timeline.