The Enforcement Directorate (ED) attached shops valued at over Rs 13 crore in a Pune SGS mall in connection with the Punjab and Maharashtra Cooperative (PMC) Bank loan fraud-linked money laundering case on Friday. The alleged fraud, amounting to Rs 6,117.93 crore (principal Rs 2,540.92 crore and interest Rs 3,577.01 crore), is said to have been committed by Housing Development and Infrastructure Development Pvt. Ltd. (HDIL) and its promoters, Rakesh Kumar Wadhawan and his son Sarang Wadhawan.
What is ED's case?
ED began its investigation after PMC Bank filed a first information report (FIR) against Joy Thomas, the suspended managing director (MD), Waryam Singh, ex-chairman of PMC Bank, and Rakesh Kumar Wadhawan and Sarang Wadhawan of HDIL.
The agency, in its official statement, alleged that HDIL and its group companies received credit facilities from PMC Bank. Despite repeated defaults in payments by HDIL and its group companies, the credit limits were consistently increased to prevent their classification as non-performing assets (NPA).
Furthermore, ED's investigation revealed that Rakesh Wadhawan and his son Sarang Wadhawan were the primary directors authorized to operate all bank accounts of HDIL and its group companies. They made key decisions for the companies and, in collusion with other accused parties, laundered the proceeds of crime through the bank accounts of HDIL and its group companies, which were under their direct or indirect control. They also diverted the proceeds of crime into their personal bank accounts and those of their close associates to acquire assets.
HDIL funneled proceeds of crime
During the scrutiny of HDIL Group's bank accounts, it was discovered that HDIL had funneled proceeds of crime while concealing this from PMC Bank. These funds were then transferred to M/s SGS group to portray them as untainted.
The main accused persons, Rakesh Kumar Wadhawan and his son Sarang Wadhawan, have been arrested and are currently under judicial custody.
Following the instant attachment, ED has identified and attached proceeds of crime totaling Rs. 675.27 Crore under the provisions of PMLA, 2002. Additionally, prosecution complaints and 2 supplementary complaints have been filed against them and 36 other persons/entities so far.
