Pune: ED Provisionally Attaches Rs 13.20 Crore Worth of Properties in HDIL’s PMC Bank Fraud Case

Mubarak Ansari

Pune, 23rd February 2024: The Directorate of Enforcement (ED) has taken action by provisionally attaching immovable properties valued at Rs 13.20 Crore in the form of shops situated in SGS Mall, Pune, belonging to SGS Group.

This move is made under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) in connection with a bank loan fraud amounting to Rs. 6117.93 Crore, involving Punjab & Maharashtra Co-operative Bank (PMC). The alleged perpetrators include M/s Housing Development & Infrastructure Pvt Ltd (HDIL), its promoters, and other co-accused/accomplices.

The ED initiated an investigation based on the FIR filed by PMC against key individuals such as Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, Sarang Wadhawan, and unidentified others. The investigation revealed that HDIL and its group companies availed an OD/Credit Facility from PMC Bank. Despite consistent defaults in payments, the OD limits were repeatedly increased to prevent their classification as Non-Performing Assets (NPA).

Moreover, the ED investigation exposed that Rakesh Wadhawan and his son Sarang Wadhawan, as the main Directors/Promoters, were authorized to operate all bank accounts of HDIL and its group companies, making crucial decisions for the companies. In collusion with other accused/accomplices, they allegedly layered the proceeds of crime in the bank accounts of HDIL and its group companies, diverting these funds into personal bank accounts and those of close associates to acquire assets.

Scrutiny of the bank accounts of HDIL Group unveiled that the company had illicitly siphoned off Proceeds of Crime, concealing it from PMC Bank and depositing these funds with M/s SGS group to portray them as untainted. The principal accused, Rakesh Kumar Wadhawan, and his son Sarang Wadhawan were arrested on 17.10.2019, currently held under judicial custody.

Following the recent attachment, the ED has identified and attached proceeds of crime amounting to Rs. 675.27 Crore under the provisions of PMLA, 2002. Prosecution complaints and two supplementary complaints have been filed against them and 36 other individuals/entities thus far. The investigation remains ongoing as ED continues to delve deeper into the intricacies of the PMC Bank fraud case.