PMC bank fraud: ED attaches HDIL group's shares worth Rs 233 crore

The Enforcement Directorate ED on Thursday said it has attached partlypaid compulsorily convertible preference shares worth Rs 233 crore of HDIL group companies in the alleged multicrorerupee PMC bank fraud and moneylaundering caseIt said on the strength of these shares HDIL had the rights for allotment of underconstruction flats measuring 90250 square feet FSI floor space index in Mumbais Ghatkopar of developer Aryaman Developers Private LimitedThe developer has given an undertaking to ensure not to sell transfer alienate or create any thirdparty rights on completion of the project the ED saidThe agency has filed a moneylaundering case to probe the alleged loan fraud in the Punjab and Maharashtra Cooperative PMC Bank in October 2019 against the Housing Development Infrastructure Limited HDIL its promoters Rakesh Kumar Wadhawan his son Sarang Wadhawan its former chairman Waryam Singh and former managing director Joy ThomasThe others under the agencys scanner include the promoters and executives of Somerset Construction Private Limited Serveall Construction Private Limited Sapphire Land Development Private Limited Emerald Realtors Private Limited Awas Developers and Construction Private Limited Prithvi Realtors and Hotels Private Limited and Satyam Realtors Private LimitedThe fatherson duo were arrested by the ED in the case in October 2019 and they are lodged in a Mumbai jail at presentRakesh Wadhawan and other promoters of HDIL have fraudulently utilised the funds taken from the PMC Bank in various projects by projecting the same as untaintedAlso read PMC bank case Enforcement Directorate raids Viva Group seizes Rs 73 lakh cashDuring 201112 an amount of Rs 233 crore was transferred from HDIL group companies to the group companies of Mukesh Doshi of Mumbai and these funds were finally utilised by Aryaman Developers Private Limited in the slum rehabilitation project being developed in Ghatkopar East Mumbai the ED said in a statementAccording to the understanding between Rakesh Wadhawan and Doshi HDIL group companies would be allotted constructed area of FSI measuring 90250 sq ft of the carpet area in the proposed buildingFor this project Aryaman Developers had its own investments including loans from banks The funds were utilised for the payment of land premium rent to slum dwellers construction of transit camps fungible premium construction of rehab and IOD intimation of disapproval deposit with the slum rehabilitation authorityThe promoters of HDIL intended to take a backdoor exit from the project and approached Aryaman Developers for a settlement at Rs 150 crore for not causing hindrance in the ongoing project for slum rehabilitation the ED allegedIt claimed that an undertaking was taken from Doshi in the form of an affidavit to ensure that the project after development would not fall in the hands of accused Rakesh WadhawanDescribing the role of HDIL in the alleged default with the PMC Bank the ED said its group companies availed loans from the bank from time to timeThe mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC bank officials with the promoters of HDILThere was misconduct on the part of PMC officials as they ignored all the prevailing procedures to facilitate promoters of HDIL by extending unusual credit facility it allegedInstead of declaring those as nonperforming assets NPAs for initiating actions for recovery PMC bank officials chose to accommodate the HDIL group the agency allegedDue to such a criminal act of the promoters of HDIL group companies the PMC Bank suffered a huge wrongful loss to the tune of Rs 611793 crore it saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever