Mumbai, August 19: The Securities and Exchange Board of India (Sebi) has accused Dheno Buildcon Infra Limited of creating a web of interconnected entities to repeatedly manipulate ₹25 crore, making it appear as though the company secured an actual unsecured loan of ₹1,000 crore.
These allegations were made in an interim order issued by Sebi’s full-time member, Kamlesh Chandra Varshney. According to the regulator, this alleged scheme was orchestrated by Surendra Kumar Jain and Virendra Jain, involving Dheno Buildcon and several associated entities.
Sebi stated that during the fiscal year 2024-25, Dheno Buildcon reportedly received an unsecured loan of ₹1,000 crore from seven entities. Subsequently, in December 2025, the company allegedly converted this ₹840 crore loan into equity through preferential allotment to six of these entities.
However, an investigation into the bank accounts of the entities involved revealed that the purported ₹1,000 crore flow was generated by repeatedly circulating the same ₹25 crore principal amount among the interconnected entities at various levels.
The regulator further alleged that the initial ₹25 crore also stemmed from suspicious fund transactions linked to other associated entities. Based on its analysis of the fund trail, Sebi concluded that the alleged loans were not genuine transactions.
As a result, the regulator claimed that the ₹840 crore preferential allotment was made without any real financial transaction.
Sebi identified multiple connections between Dheno Buildcon, the lenders, and the entities receiving the preferential allotment, including shared addresses, directors, authorized signatories, and bank branches. Furthermore, there was significant cross-shareholding among these entities.
According to the regulator, the entities involved were directly or indirectly owned, controlled, or managed by Surendra Jain and Virendra Jain.
Sebi also referenced chat messages and call records seized during an unrelated investigation, which allegedly provided evidence of control over this network. Concerns were raised during physical inspections of the registered offices of these entities, suggesting a lack of substantial physical presence and business activities.
The regulator noted that these transactions occurred during a period of dramatic increase in Dheno Buildcon’s market valuation.
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