How a Rs 25 crore circular fund flow created a phantom Rs 1,000 crore liability

The SEBI probe uncovered a circular fund‑flow mechanism where a single Rs 25 crore was repeatedly transferred among a network of companies tied to Dhenu Buildcon Infra Ltd. By moving the same amount through different layers, the scheme fabricated a cumulative exposure of Rs 1,000 crore on the company’s balance sheet. Bank account examinations showed that each movement was essentially a redistribution of the original Rs 25 crore, rather than fresh capital inflow. The regulator pointed out that the eight entities involved displayed striking similarities in address, directors and authorised signatories, and many held cross‑shareholdings, reinforcing the impression of a single economic entity masquerading as multiple independent lenders.