The Enforcement Directorate (ED) has taken significant action in connection with the Punjab & Maharashtra Co-Operative Bank (PMC) scam case, attaching agricultural land parcels valued at over Rs 50 crore belonging to Housing Development Infrastructure Ltd (HDIL) promoters. This move is made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The attached land parcels, totaling approximately 1,807 acres in the Sindhudurg district of Maharashtra, have a registered value of nearly Rs 52.90 crore. These parcels were acquired using proceeds from the scam, amounting to Rs 82.30 crore, during the period from 2010 to 2013.
The ED initiated investigations based on an FIR filed by the Economic Offences Wing (EOW) of the Mumbai Police against several individuals, including directors of PMC Bank and HDIL promoters. The investigation revealed a fraud amounting to Rs 6,117.93 crore against PMC Bank, causing severe losses to around sixteen lakh account holders.
It was found that HDIL promoters, Rakesh and Sarang Wadhawan, utilized PMC Bank for personal gains, with the bank's officials aiding them. Loans were disbursed to the Wadhawans without proper documentation or record-keeping. Additionally, the security provided for these loans was found to be inadequate.
Further investigation revealed that the Wadhawans siphoned off proceeds of crime to the tune of Rs 82.30 crore to the bank accounts of around 40 farmers through their subsidiary companies. These funds were used to acquire lands in Sindhudurg, purportedly for port development but never materialized.
Sarang and Rakesh Wadhawan diverted funds into the accounts of farmers, concealing their activities from PMC Bank. Consequently, assets valued at nearly Rs 53 crore have been provisionally attached under PMLA.
The prime accused, Rakesh and Sarang Wadhawan were arrested on October 17, 2019, for their involvement in money laundering. The ED has filed prosecution complaints against them and 36 other entities, with assets totaling Rs 719.11 crore attached under PMLA.
Despite their arrest, Sarang and Rakesh Wadhawan were granted bail last week after spending around four and a half years in custody. They are also involved in the Mackstar bank loan fraud case, which is under investigation by the ED.
