The Enforcement Directorate's (ED) Mumbai Zonal office has taken action to attach assets valued at over Rs 36 crore in a bank fraud case, utilizing the provisions of the Prevention of Money Laundering Act (PMLA). This case is linked to Rakesh and Sarang Wadhawan, the promoters of Housing Development Infrastructure Limited (HDIL), along with others.
The father-son duo had been arrested in 2019 in connection with a significant money laundering case pursued by both the ED and the Economic Offence Wing of Mumbai Police. However, in a recent development, the Bombay High Court granted bail to Rakesh and Sarang Wadhawan in the Punjab and Maharashtra Co-operative (PMC) Bank fraud case.
In the most recent loan fraud case, which involves Mack Star, a subsidiary of HDIL, the investigation has uncovered links to relatives of underworld figure Jayendra Thakur alias Bhai Thakur.
The attached assets currently comprise commercial properties, including two office units at the Kaledonia building in Mumbai's Andheri East, and shops located in Veena Velocity Phase II, Palghar district.
The Enforcement Directorate's investigation was initiated based on an FIR filed by the Central Bureau of Investigation's (CBI) Anti-Corruption Bureau in Mumbai. This FIR, lodged against Rakesh and Sarang Wadhawan, and others, alleges the misappropriation of a Rs 200 crore loan sanctioned by Yes Bank to Mack Star. Additionally, a complaint filed by Mack Star resulted in a separate FIR, alleging that the Wadhawans had unlawfully sold several office units in the Kaledonia building, owned by Mack Star, resulting in a loss of over Rs 300 crore for the HDIL subsidiary.
The ED's investigation revealed that Rakesh and Sarang Wadhawan had unlawfully transferred a commercial property of Mack Star to Vikram Homes Pvt. Ltd without proper payment to the subsidiary company. This action constituted cheating, as the properties were sold without the consent of the majority shareholder, DE Shaw Group, which holds 83.36 percent of Mack Star.
Previously, the ED had attached properties valued at Rs. 244.36 crore. With the recent attachment of assets, the total amount currently stands at Rs 281.02 crore.
