Mumbai: EOW books Wadhawans in fresh complaint of defrauding marketing firm of ₹88 Cr

Mumbai: The Economic Offence Wing (EOW) of Mumbai police have registered a fresh complaint against Housing Development and Infrastructure Limited’s (HDIL) Rakesh Wadhawan, Sarang Wadhawan and others for allegedly defrauding a marketing company of Rs88.47 crore.

According to the information given by the police, Sumit Shah, Managing Director of Mack Star Marketing Private Limited, had registered a police complaint that his company was a joint venture of Mauritius-based Ocean Deity Investment Holdings Limited (ODIL) and a company owned by the Wadhawans.

Wadhawans allegedly misused their position at Mack Star

HDIL and ODIL had entered into a mutual agreement which prevents the directors-shareholders of Mack Star from selling assets or taking loans without the consent of ODIL. But despite this, the Wadhawans allegedly misused their position at Mack Star. Venkatavardhan Iyengar, Waryam Singh Arora, the directors in Mack Star on behalf of HDIL, sold eight office units in Caledonia without informing ODIL. Thus, ODIL allegedly suffered a wrongful loss of Rs88.47 crore.A police officer said that a case has been registered in this matter at NM Joshi Marg police station and further investigation is being done by the EOW. A case of cheating has been registered against Rakesh Wadhawan, Sarang Wadhawan, Vyankatwardhan Iyengar, Waryam Singh Arora and five others under IPC sections 409, 420, 423, 120(B) and 34.

The Wadhawans have been in jail since 2019. Both of them were arrested by the Mumbai Police in connection with the Rs6,670 crore Punjab and Maharashtra Co-operative (PMC) bank scam.