A notice was ordered to the SEBI by the Madras High Court on a PIL asking for an investigation by them into certain fraudulent activities in the Dewan Housing Finance Corporation Ltd (DHFL).
The matter involves what the petitioner thinks to be the “biggest fraud in the capital market in this nation,” the bench said.
The bench stated that the petitioner believes the investors may have lost more than Rs 40,000 crore. In the PIL, Ranganathan of Mylapore asked for a direction to SEBI to complete its task by taking necessary action. 
SEBI wanted to start a thorough investigation and exercise necessary steps to find out more about fraudulent activities going on in DHFL and its management.
The petitioner claims to have invested close to Rs.30 Lakh to purchase Non-Convertible Debentures issued by DHFL, but DHFL neither returned the amount nor paid any interest on the same.
The petitioner also claims this to be the biggest scam to have taken place in this nation. So, under the provisions of the SEBI Act, 1992, DHFL ought to proceed considering the resources at SEBI’s disposal.
