Mumbai: The Enforcement Directorate (ED) is investigating HDIL promoters Rakesh and Sarang Wadhawan in a money laundering case linked to Mack Star Marketing Pvt Ltd. The probe found that HDIL-appointed independent directors in Mack Star were allegedly mere ‘dummy directors’ acting under Wadhawan’s instructions.
According to ED prosecution Complaint(PC) Waryam Singh, a Wadhawan associate since 1980, served as a director in multiple firms, including HDIL and Sapphire Land Developments Pvt Ltd, and was appointed to Mack Star’s board. Similarly, Venkatavarathan Iyengar, an HDIL employee managing TDR procurement and sales, held a directorship from 2013 to 2017. Lakhminder Dayal Singh, a site manager for HDIL, was a director from 2015 to 2017.
The ED found these individuals were directors in name only, signing documents like fake board resolutions and sale agreements without oversight, while the Wadhawans controlled Mack Star’s operations, including the alleged unauthorized sale of properties such as the Kaledonia Building in Mumbai.Investigators suspect proceeds from these transactions were diverted to other Wadhawan entities, such as HDIL and Sapphire Land Developments Pvt Ltd (SLDPL). Evidence shows alleged fraudulent transfers of Mack Star’s Kaledonia properties, with dummy directors admitting they acted under pressure and were unaware of financial details.
The ED is investigating the alleged fraudulent sale of Office Units OS-801B and 904 in the Kaledonia Building, properties of Mack Star Marketing Pvt Ltd, to M/s Skyway RMC Plants Pvt. Ltd. The company, owned by Kelvin Singh Kohli and Rashmeet Singh Kohli, had supplied Ready Mix Concrete (RMC) to HDIL since 2009. By 2017, HDIL owed them approximately Rs 32 crore. Investigations reveal that to settle the dues, Rakesh and Sarang Wadhawan allegedly conspired with Kelvin Singh Kohli to settle the amount through illegal property transfers. As part of the alleged fraudulent scheme, the Wadhawans allegedly transferred assets, including 10 flats in The Nest Project, Mulund, belonging to the HDIL Group, and the two office units in the Kaledonia Building of Mack Star, valued at Rs 27.34 crore.
Despite an MoU in 2018, Skyway RMC paid only Rs 1 lakh for the properties. The transaction was an adjustment against RMC supplies to HDIL. In 2019, Skyway RMC resold one unit for Rs 8 crore.
Similarly, HDIL's Rakesh Wadhawan was involved in an alleged fraudulent property transfer with Vasudevan Ramamoorthy, Managing Director of Vascon Engineers Ltd. (VEL). Between 2009 to May 2011, VEL constructed a commercial building for HDIL’s "Premier" project in Kurla. By 2011, an amount of Rs 26.60 crore along with interest for VEL became outstanding on HDIL. Due to financial constraints, Wadhawan allegedly conspired to settle the dues by illicitly transferring Unit 201 in Kaledonia, worth Rs 21.50 crore, to VEL in April 2014. In an attempt to legalize their alleged conspiracy, Wadhawans & Ramamoorthy entered into an agreement as per which an MoU was signed between HDIL and VEL, wherein HDIL had agreed to settle an amount of Rs 17.50 crore against the dues/claims of VEL by giving Office Unit 201, having a value of Rs 21.50 crore, to VEL. The remaining Rs 4 crore was shown as an advance given by HDIL to VEL for completing the ‘Premier’ Project in Kurla. However, investigations revealed that VEL neither completed the project nor made any payments to Mack Star, the actual owner of the Kaledonia unit. Further, the alleged fraudulent adjustment of dues was even recorded in the sale deed. Authorities are now probing deeper into the alleged conspiracy and financial irregularities involved in the transaction.
Similarly, Wadhawans engaged in the alleged transfer and sale of Office Unit No. 4-B in the Kaledonia Building. Wadhawan allegedly transferred the unit to M/s FSD Properties Pvt. Ltd. (now M/s FSD Lifespaces Pvt. Ltd.) to settle outstanding dues of Rs 7.67 crore owed to Zakaria Farouk Darvesh’s company, FSDCPL, for steel supplies to several HDIL projects. Despite the property being valued at Rs 7.79 crore, Mack Star, the rightful owner, received only Rs 12.86 lakh from the transaction. The entire alleged transaction of sale,transfer of the said property was a settlement of dues between Zakaria Farouk Darvesh and Wadhawans against the supply of steel by FSDCPL and M/s Western Lumbers to the HDIL Group.
Probe Reveals Fraudulent Properties Transferred
The investigation concerns the alleged fraudulent transfer of the entire 7th floor (Office Units 701-704, approximately 3958.15 sq. m.) in the Kaledonia Building, originally owned by Mack Star, to M/s Vikram Homes Pvt. Ltd. (VHPL), a company managed by the Talwar family. At the time, Satya Pal Talwar was a director at HDIL. Satya Pal Talwar served as a director in HDIL from 2006 to 2013 and was previously the Deputy Governor of the Reserve Bank of India (RBI) from 1995 to 2002. In 2007, Talwar allegedly advised his brother,Dharam Pal Talwar, to invest in the Kaledonia Project, which was being developed by HDIL under R.T. Construction. Despite being aware that HDIL was in negotiations with ODIL for development rights, Mr. Talwar and his brother proceeded with discussions with Mr. Rakesh Kumar Wadhawan, the alleged beneficial owner of HDIL, to acquire the 7th floor of the Kaledonia Building. The Wadhawans allegedly orchestrated the sale for just Rs 13 crore—less than a third of its actual Rs 40.37 crore value—without approval from Mack Star’s investors, ODIL/DE Shaw Group. However, even this amount was never paid to Mack Star; instead, it was allegedly diverted to HDIL under Rakesh Kumar Wadhawan’s instructions. As a result, Mack Star suffered a wrongful loss of Rs 40.37 crore while VHPL allegedly acquired the property illegally.
The transaction involved an alleged criminal conspiracy between the Wadhawans of HDIL Group and the Talwars of VHPL, resulting in a significant financial loss to Mack Star and ODIL.
The PC claims that several other units were also allegedly transferred and sold by the Wadhawans, who allegedly defrauded Mack Star by illegally and fraudulently selling or transferring its properties in the Kaledonia Building to various associates and buyers. This alleged fraudulent scheme caused alleged losses amounting to ₹345.48 crore to Mack Star while simultaneously providing alleged undue financial gains to the HDIL Group, its associates, and the respective purchasers.
