SEBI Freezes All Assets and Accounts of Defaulter in DU Digital Technologies Probe; Total Dues Cross ₹12 Lakh Mark

SEBI Freezes All Assets and Accounts of Defaulter in DU Digital Technologies Probe; Total Dues Cross ₹12 Lakh Mark​

The Securities and Exchange Board of India (SEBI) has taken decisive regulatory action against Dhaval Vinodbhai Gadani. The regulator issued multiple notices of attachment on July 22, 2026, targeting the financial holdings of Mr. Gadani in connection with trading activities involving DU Digital Technologies Limited (now DU Digital Global Limited).

The immediate and severe move involves the attachment of all bank accounts, post office accounts, Demat accounts, and Mutual Fund folios held by the individual. The action aims to recover a substantial amount owed under SEBI's Recovery Certificate.

SEBI Initiates Comprehensive Asset Attachment Proceedings​

Under the authority of Section 28A (1) of the SEBI Act, 1992, the Recovery Officer has ordered the immediate attachment of all financial assets linked to Dhaval Vinodbhai Gadani. These orders have been dispatched across key financial institutions including Post Offices, commercial banks, and depository service providers.

The notices stipulate that no debit shall be made against any of the attached accounts up to the extent of the total dues until further instructions are received from the SEBI Recovery Officer. However, the notices allow credits into these designated accounts if such funds are deposited.

Financial Exposure Details: Penalty and Interest Mount ₹12,73,000​

The attachment proceedings relate to a recovery certificate amounting to a significant sum. The total outstanding dues against Dhaval Vinodbhai Gadani amount to ₹12,73,000.00 (Rupees Twelve Lakh and Seventy Three Thousand Only).

This sum is broken down as follows:

• Penalty: A primary penalty of ₹12,00,000.00 was imposed by the Adjudicating Officer vide Order No. QJA/MN/IVD/ID7 / 31947 / 2025-26 dated December 31, 2025.
• Interest: An interest amount of ₹72,000.00 has been accrued from January, 2026 to June, 2026 at a rate of 1% p.m.
• Recovery Cost: The residual recovery cost accounts for ₹1,000.00.

Targeted Financial Assets Include Bank Accounts and Demat Folios​

SEBI has issued specific notices targeting three major pillars of the defaulter's financial life: banking institutions, post offices, and securities market holdings.

The notice sent to the Principal Officer/CEO of all Banks in India mandates the attachment of all accounts held by Dhaval Vinodbhai Gadani. This includes any personal or joint bank accounts and associated lockers. The instructions also require banks to provide details and statements for the last one year period.

Similarly, the Notice of Attachment issued to the Principal Officers/CEOs of Mutual Funds in India requires the immediate attachment of all Mutual Fund folios linked to the defaulter. Banks are also directed to attach all existing loan/advance accounts and the assets charged against them.

Oversight of Post Office and Depository Accounts Confirmed​

The Recovery Officer's notice issued to Head Postmasters across various post offices formally attaches all accounts held by Dhaval Vinodbhai Gadani, both singly or jointly. These proceedings ensure that no proceeds may be disposed of in these accounts during the attachment period.

In parallel, a separate notice has been served to M/s. National Securities Depository Ltd. and other concerned entities regarding Demat Accounts and Mutual Fund Folios. This ensures regulatory oversight over securities held by Mr. Gadani. The notices instruct the respective financial institutions to provide comprehensive details of all attached accounts or folios within 15 days.