PMC Bank-HDIL Fraud: ED Attaches Assets Worth Rs13.20 Crore in Pune's SGS Mall
Moneylife Digital Team 23 February 2024
The directorate of enforcement (ED) has provisionally attached immovable properties totalling Rs13.20 crore in the form of shops in SGS Mall at Pune held by SGS group under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). The case is related to Rs6,117.93 crore fraud in Punjab & Maharashtra Co-operative (PMC) Bank committed by Housing Development & Infrastructure Ltd (HDIL), its promoters and other co-accused and accomplices.
 
ED investigated the matter after PMC Bank registered a first information report (FIR) against Joy Thomas, the suspended managing director (MD) and Waryam Singh, ex-chairman of PMC Bank, and Rakesh Kumar Wadhawan and Sarang Wadhawan of HDIL. 
 
ED investigation revealed that HDIL and its group companies availed the overdraft (OD) or credit facility from the PMC Bank. Despite repeated defaults in payments by HDIL and its group companies, the OD limits were enhanced from time to time to avoid them being classified as non-performing assets (NPAs). 
 
Further, ED investigation also revealed that Rakesh Wadhawan and his son Sarang Wadhawan were the main directors and promoters and were authorised to operate all the bank accounts of HDIL and its group companies. 
 
"All the key decisions of the companies were taken by them. They in connivance with other accused or accomplices, have layered the proceeds of crime in the bank accounts of HDIL and it's group companies, which were under their direct or indirect control. They have also diverted the proceeds of crime into their personal bank accounts and the bank accounts of their close associates to acquire assets," ED says.
 
During scrutiny of the bank accounts of HDIL group, the investigation revealed that HDIL had siphoned proceeds of crime while keeping PMC Bank in the dark and parked these proceeds of crime funds with SGS group to project it as untainted money.
 
The main accused in this case, Rakesh Kumar Wadhawn and his son Sarang, who were arrested on 17 October 2019, are currently under judicial custody.
 
After the current attachment, ED says it has identified and attached proceeds of crime totalling Rs675.27 crore under provisions of PMLA. Also, a prosecution complaint and two supplementary complaints have been filed against them and 36 other entities so far, it added.
 
Earlier in November 2019, Reserve Bank of India (RBI), in an affidavit submitted to the Bombay High Court (HC) stated that PMC Bank had submitted fraudulently manipulated data to the central bank for sample checks, but the sample of accounts picked for inspection did not contain undisclosed accounts of HDIL.
 
RBI says, "The Bank had also sanctioned mortgage overdraft limits to a wholly-owned subsidiary of the HDIL while the present (now arrested Waryam Singh) chairman of PMC Bank was also a director of the company -- a clear conflict of interests and violation of the RBI's Master Circulars... Waryam Singh also chaired a PMC Bank board meeting to ratify the approval of mortgage overdraft in which he was directly interested, again contravening RBI norms."
 
"The inspection team had also established the relationship between the chairman of the Bank and HDIL promoters, which might have acted as the primary consideration for sanction of credit facilities and resulted in their utilisation to pay off one-time settlement dues with other landers," RBI says. (Read: PMC Bank Fraud: RBI Says the Bank Submitted Fraudulently Manipulated Data on HDIL Loans)
 
Besides the PMC Bank and the Indian Bank, others from the Wadhawan clan—Kapil Wadhawan and Dheeraj Wadhawan—figure in the Yes Bank scam along with its founder Rana Kapoor and his family, and several other bigwigs, with probes by the Securities and Exchange Board of India (SEBI), enforcement directorate (ED) and central bureau of investigation (CBI).
Comments
durve.ss1975
2 months ago
ITS REALLY GOOD THAT ED IS DOING GOOD WORK ????. BUT MY QUESTION IS EARLIER ALSO ED HAS ATTACHED SO MANY PROPERTIES BUT Y THEY AREN'T SELLING OUT THOSE PROPERTIES IN AUCTION ,SO THE BANK WILL GET HIS MONEY BACK AND EVEN THE INNOCENT DEPOSITORS DONT HAVE TO WAIT FOR ANOTHER 10YRS TO GET THEIR HARD EARNED MONEY BACK.ALREADY ITS TOO LATE.AND CURRENTLY WHAT THE BANK IS GIVING MONEY ISN'T GOOD ENOUGH AT ALL AND EVEN THE AMALGAMATION SCHEME IS ALSO NOT IN FAVOUR OF DEPOSITORS.PLEASE DO SOMETHING
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