In connection with a bank loan fraud case involving Rs 6,117.93 crore filed by Punjab and Maharashtra Co-operative Bank (PMC) against Housing Development and Infrastructure Private Ltd (HDIL), its promoters, and other co-accused, the Enforcement Directorate (ED) has provisionally attached immovable properties valued at Rs 13.20 crore. These properties, comprising shops in SGS Mall located in Pune, belong to the SGS Group, which is the owner of the mall. This action has been taken under the provisions of the Prevention of Money Laundering Act, 2002.
The ED's inquiry stemmed from an FIR filed by PMC against individuals including Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, Sarang Wadhawan, and others, invoking various sections of the IPC.
According to statements released by the investigative agency, the investigation uncovered that HDIL and its affiliated companies obtained OD/ Credit Facility from PMC Bank. Despite multiple instances of default in payments by HDIL and its associated companies, the OD limits were continually raised to prevent their classification as Non-Performing Assets (NPA).
Further scrutiny revealed that Rakesh Wadhawan and his son Sarang Wadhawan held prominent positions as directors or promoters and were vested with the authority to manage all bank accounts of HDIL and its related entities. They were also responsible for making crucial decisions for these companies.
The ED alleges that Rakesh and Sarang, in collusion with other accused individuals, layered the illicit proceeds into the bank accounts of HDIL and its affiliates, which were under their direct or indirect control. Additionally, they diverted these proceeds into their personal bank accounts and those of their close associates to acquire assets. These funds, classified as "proceeds of crime," were also routed to the SGS Group to portray them as legitimate.
Both Rakesh and Sarang Wadhawan have been in judicial custody since 2019.
The ED has also seized proceeds of crime totaling Rs 675.27 crore under the provisions of PMLA. Furthermore, two supplementary complaints have been lodged against them along with 36 other individuals, with ongoing investigations.
