The Enforcement Directorate (ED), Mumbai, on Saturday said that they have provisionally attached immovable properties consisting of 2nd, 3rd, 4th and 5th floor of Hotel One Continent at King Koti Road, Sultan Bajaar, Abids, Hyderabad, to the extent of ₹43.84 crore under the provisions of Prevention of Money Laundering Act (PMLA), 2002, in loan fraud case of the Punjab and Maharashtra Cooperative (PMC) Bank.
The ED initiated investigation on the basis of a First Information Report filed by the PMC against Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, his son Sarang Wadhawan and unknown other persons under various Sections of the Indian Penal Code, 1860.
The Housing Development and Infrastructure Pvt. Ltd. (HDIL), its promoters and other co-accused/accomplices committed a fraud by causing loss of ₹6,117.93 crore (principal ₹2,540.92 crore and interest ₹3,577.01 crore) against the PMC, said ED officials in a statement.
During the course of investigation under the PMLA, based on a specific inputs and scrutiny of bank accounts of the HDIL Group, it is revealed that during 2006-2014, the promoters of the HDIL had siphoned off proceeds of crime amounting to ₹43.84 crore to entities in Hyderabad viz. My Palace Mutually Aided Cooperative Housing Society and Anish Construct.
The transaction was carried out by Mr. Rakesh Wadhwan projecting it as a business by keeping the PMC Bank in dark. Based on outcome of the investigation assets worth ₹43.84 crore belonging to Shri Shripad Deshpande’s Group of Companies has been provisionally attached under the PMLA.
On October 17, 2019, the main accused persons, Mr. Rakesh Wadhawn and Mr. Sarang Wadhawan, were arrested for their involvement in money laundering and both are currently under judicial custody. Prosecution complaint and two supplementary complaints have already been filed against them and 36 other persons and entities.
So far, the ED has attached assets aggregating to ₹719.11 crore under provisions of the PMLA, 2002. Further investigation was on, the officials said.
