India’s markets regulator SEBI has uncovered an alleged fund rotation scheme linked to Dhenu Buildcon Infra Ltd. A base amount of just Rs 25 crore was rotated repeatedly through bank accounts of related entities. This created the false impression of Rs 1,000 crore in unsecured loans, the regulator said in an interim order.
How the Alleged Scheme Worked
The interim order was issued by SEBI Whole Time Member Kamlesh Chandra Varshney. It names Surendra Kumar Jain and Virendra Jain among the entities involved.
During FY 2024-25, Dhenu Buildcon claimed Rs 1,000 crore in unsecured loans from seven entities. In December 2025, the company converted Rs 840 crore of this debt into equity. Six entities received preferential allotment of shares.
But bank account analysis told a different story. The Rs 1,000 crore inflow was built by rotating a Rs 25 crore base amount. The money moved repeatedly between accounts of linked entities.
Even the source of the initial Rs 25 crore looked suspicious, SEBI said. The loans were prima facie not real economic transactions.
Market Cap Jumped From Rs 3 Crore to Rs 4,925 Crore
During the probe period, Dhenu Buildcon’s market cap surged from about Rs 3 crore to Rs 4,925 crore. This happened without any major change in the company’s revenue or profit.
The regulator linked the jump to the alleged loan-to-equity conversion. Related parties could earn unearned gains by selling these shares later.
Common Links Found Between Entities
SEBI found multiple connections between the company, the lenders, and the allotment recipients. These included identical addresses, common directors, and authorized signatories.
Cross-shareholding and same bank branch links were also found. The entities were controlled by Surendra Jain and Virendra Jain.
Chat messages and call records from a search in another case supported the findings. The registered office lacked real business activity.
SEBI Bars Six Entities From Trading
SEBI has barred six individuals and entities from trading in Dhenu Buildcon shares. The company has also been restrained from taking corporate actions.
Surendra Kumar Jain and Virendra Jain cannot buy or sell securities for now. They are barred from all securities market participation.
Stock exchanges must examine compliance with SCRA 1957 rules. These are allegations in an interim order.
