ED attaches Rs 233 cr worth preference shares of HDIL group firms in PMLA case

The ED had initiated an investigation under the PMLA on the basis of FIR dated 30.09.2019 registered by the Economic Offences Wing of the Mumbai Police

Somendra SharmaUpdated: Friday, September 03, 2021, 01:43 AM IST
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The Enforcement Directorate (ED) attached partly paid Compulsorily Convertible Preference shares of Housing Development Infrastructures Ltd (HDIL) group companies totaling to Rs 233 crore under the provisions of Prevention of Money Laundering Act (PMLA) in the PMC Bank scam, the agency officials informed on Thursday.

On the strength of these shares, HDIL has the right for allotment of under construction flats admeasuring 90,250 square feet FSI in Ghatkopar, of the developer M/s Aryaman Developers Pvt Ltd. The developer has given an undertaking to ensure not to sell/transfer/alienate or create any third party rights thereon on completion of the project.

The ED had initiated an investigation under the PMLA on the basis of FIR dated 30.09.2019 registered by the Economic Offences Wing of the Mumbai Police on September 30, 2019 under the provisions of Indian Penal Code against Joy Thomas (Managing Director) of PMC Bank, Waryam Singh (Chairman), Sarang Wadhawan, Rakesh Kumar Kuldip Singh Wadhawan of HDIL and promoters and executives of M/s Somerset Construction Pvt Ltd, Serveall Construction Pvt Ltd, Sapphire Land Development Pvt Ltd, Emerald Realtors Pvt Ltd, Awas Developers & Construction Pvt Ltd, Prithvi Realtors and Hotels Pvt Ltd, Satyam Realtors Pvt Ltd and others for causing wrongful loss to the tune of Rs 4355 Crore to PMC Bank and corresponding gain to themselves.

The agency claimed, "Investigation under PMLA revealed that in spite of default in payment, HDIL group companies availed loans from PMC from time to time. The mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC Bank officials with the promoters of HDIL. There was misconduct on the part of PMC officials as they ignored all the prevailing procedures to facilitate promoters of HDIL by extending an unusual credit facility. Instead of declaring them as NPA for initiating actions for recovery, the PMC bank officials choose to accommodate the HDIL group. Due to such criminal act of promoters of HDIL Group companies, PMC bank suffered a huge wrongful loss to the tune of Rs 6117.93 Crore."

"Investigation further revealed that Rakesh Wadhawan and other promoters of HDIL, have fraudulently utilized the funds taken from PMC Bank in various projects by projecting the same as untainted. During the year 2011-12, an amount of Rs 233 crore was transferred from the HDIL group companies to group companies of Mukesh Doshi of Mumbai,” the ED said.

It further said that these funds were finally utilised by Aryaman Developers Pvt Ltd in the Slum Rehabilitation Project developed in Ghatkopar East. As per the understanding between Rakesh Kumar Wadhawan and Mukesh Doshi, HDIL group of companies would be allotted constructed area of FSI admeasuring 90250 Sq ft of Carpet Area in the proposed building, said the agency.

“For the instant project M/s Aryaman Developers had its own investments including loans from bank. The funds were utilised for payment of Land premium, Rent to Slum Dwellers, Construction of Transit Camps, Fungible Premium, Construction of Rehab and IOD Deposit with SRA. It is also revealed that the promoters of HDIL intend to take a back door exit from the project and approached M/s Aryaman Developers for a settlement at Rs150 Crore. To not to cause hindrance in the ongoing project for slum rehabilitations, an undertaking was taken from the Mukesh Doshi in the form of affidavit to ensure that the project after development would not fall in the hands of accused Rakesh Kumar Wadhawan. Therefore, the identified Proceeds of Crime generated out of fraudulently availed loan by HDIL from PMC, lying in the form of Compulsorily Convertible Preference shares of HDIL group companies totaling to Rs 233 crore are provisionally attached under PMLA," the ED claimed.

Earlier, Rakesh Wadhawan and Sarang Wadhawan the promoters of HDIL were arrested under PMLA on October 17, 2019 and are presently in judicial custody. A Prosecution Complaint has been filed before the Special PMLA court against R K Wadhawan , Sarang Wadhawan, Waryam Singh and Joy Thomas, officials said.

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