Central Government Puts Out Look Out Circular Against HDIL Directors Sarang And Rakesh Kumar Wadhawan
[ By Bobby Anthony ]The Ministry of Corporate Affairs has got the central government to put out a look out circular against two directors of realty firm HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan after preliminary findings allegedly revealed financial irregularities at the company.Accordingly, the Bureau of Immigration which comes under the Ministry of Home Affairs will ensure...
The Ministry of Corporate Affairs has got the central government to put out a look out circular against two directors of realty firm HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan after preliminary findings allegedly revealed financial irregularities at the company.
Accordingly, the Bureau of Immigration which comes under the Ministry of Home Affairs will ensure that the HDIL’s Managing Director Sarang Wadhawan and whole time director Rakesh Kumar Wadhawan do not leave India through any airport or seaport.
Incidentally, the Punjab and Maharashtra Co-operative (PMC) Bank’s exposure to the HDIL group is nearly 73% of its total loan book size of Rs 8,880 crore as on September 19, 2019.
The bank’s suspended managing director Joy Thomas had confessed in writing to the Reserve Bank of India (RBI) and accepted giving loans to HDIL and its related entity worth Rs 6,500 crore without informing all board members.
In a related development, the Economic Offences Wing (EOW) of the Mumbai Police is also likely to question troubled Punjab and Mumbai Co-operative Bank’s Chairman S Waryam Singh in connection with its investigation into embezzlement allegations against HDIL promoter Sarang Wadhawan.
Wadhawan is being investigated for embezzling funds from a joint venture between HDIL and Ocean Deity Investment Holdings, a foreign investment company. Wadhawan’s other partners have lodged a complaint with police, which has already questioned him once.
Wadhawan and his family are being investigated in fraud case involving a joint venture between the Maharashtra Housing and Development Authority (MHADA) and HDIL to develop a slum land in Mumbai.
PMC Bank chairman Waryam Singh is also considered to be close to HDIL promoters and has been on the board of several of the group’s companies, including the controversial Dewan Housing Finance Ltd and HDIL, where he was a director on the board.
Investigations are also likely into whether PMC Bank employees were pressured into clearing the loan.