Fraud at PMC Bank: ED seizes assets valued at Rs 43.84 crore
In the Punjab and Maharashtra Cooperative (PMC) Bank bank loan fraud case, the Enforcement Directorate (ED) temporarily attached immovable properties, including the second, third, fourth, and fifth floors of Hotel One Continent on King Koti Road in Abids, for a total of Rs 43.84 crore, in accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED opened an investigation into Housing Development & Infrastructure Pvt Ltd (HDIL), its promoters, and other co-accused/accomplices based on a formal complaint (FIR) filed under various sections of the IPC against Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, Sarang Wadhawan, and other unidentified individuals. They are accused of defrauding the PMC Bank out of Rs 6,117.93 crore (principal of Rs 2,540.92 crore and interest of Rs 3,577.01 crore).
Based on particular information provided to the investigation and an examination of the HDIL Group’s bank accounts, it was discovered that between 2006 and 2014, the promoters of HDIL had embezzled Rs 43.84 crore in proceeds of crime to two organizations in Hyderabad, My Palace Mutually Aided Cooperative Housing Society and Anish Construct. Rakesh Wadhwan handled this transaction, concealing it from PMC Bank and passing it off as a genuine business deal.
The primary suspects, Rakesh Kumar Wadhawan and his son Sarang Wadhawan, were detained on October 17, 2019, and are still being held in judicial custody. In this instance, the ED has so far attached assets valued at Rs 719.11 crore.
