A Punjab and Maharashtra Co-operative Bank branch.
Credit: PTI File Photo
New Delhi: The Enforcement Directorate on Friday said it has attached shops worth more than Rs 13 crore in a Pune mall in the Punjab and Maharashtra Cooperative (PMC) Bank loan fraud-linked money laundering case.
The 'fraud' worth Rs 6,117.93 crore (principal Rs 2,540.92 crore and interest Rs 3,577.01 crore) is alleged to have been perpetrated by the Housing Development and Infrastructure Development Pvt. Ltd. (HDIL) and its promoters Rakesh Kumar Wadhawan and his son Sarang Wadhawan.
The ED has filed a criminal case of money laundering against HDIL, the Wadhawans and PMC Bank's former chairman Waryam Singh and ex-managing director Joy Thomas to probe the alleged fraud in the bank in October 2019.
The agency alleged in a statement that HDIL and its group companies availed the credit facility from the PMC Bank but despite 'repeated defaults' in payments by HDIL and its group companies, the OD (overdraft) limits were enhanced from time to time to avoid classifying them as an NPA (non-performing asset).
Rakesh Wadhawan and Sarang Wadhawan were the main directors and promoters and were authorised to operate all the bank accounts of HDIL and its group companies, the agency said.
"All the key decisions of the companies were taken by them. They (the Wadhawans), in connivance with other accused, layered the proceeds of crime in the bank accounts of HDIL and its group companies which were under their direct/indirect control," the ED claimed.
The Wadhawans also 'diverted' the proceeds of crime into their personal bank accounts and the bank accounts of their close associates to acquire assets, it said.
"During scrutiny of bank accounts of HDIL Group, investigation found that HDIL siphoned off proceeds of crime while keeping PMC Bank in the dark and parked these funds with SGS Group to project the same as untainted," the agency said.
A provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to attach the shops located in Pune's SGS Mall.
These shops are in the name of the SGS Group and are valued at Rs 13.20 crore.
The Wadhawans were arrested by the ED as part of the investigation in the case in October 2019 and both are currently lodged in jail under judicial custody.
The total value of assets attached in the case so far stands at Rs 675.27 crore. The ED has filed three charge sheets in the case.