Housing Development and Infrastructure Limited's (HDIL) promoter Sarang Wadhawan has been denied bail in two cases by a sessions court on Thursday - Patra Chawl redevelopment defraud case of Rs. 1,034 crore and another housing fraud case amounting to Rs. 131 crore.
Wadhawan had sought bail on the merits of the cases, which was opposed by the Economic Offences Wing.
In the Patra Chawl case, as per the complaint by Maharashtra Housing and Area Development Authority (MHADA), Sarang Wadhawan as the director of Guruashish Constructions had cheated the MHADA and 672 tenants living in 47 acres of Siddharth Nagar’s Patra Chawl in Goregaon.
The company had entered into a tripartite agreement and promised 767 sq. ft. in built-up area to the tenants and a free-sale component of over 2.28 lakh sq. ft. to MHADA in exchange for commercially exploiting some part of the land. The complaint claimed that the company misused a July 2011 No-Objection Certificate given by the MHADA and subcontracted the project to seven builders. The redevelopment did not take place and MHADA too was not given the free-sale component promised. The fraud is pegged at Rs. 1,034 crore.
In the other housing fraud case too Wadhwan was denied bail. As per the EOW’s case, 465 homebuyers were cheated of Rs. 131 crore as they were promised homes in ‘The Meadows’ project in Goregaon by October 2014, but the flats were not delivered. A complaint was registered for cheating against HDIL, Guruashish Constructions - a subsidiary of HDIL and their directors Rakesh Wadhawan and Sarang Wadhwan.