HDIL’s Rakesh, Sarang Wadhawan Arrested And Produced Before Court As ED Charges Them With Money Laundering

Housing Development and Infrastructure Ltd (HDIL) executives Rakesh Wadhawan and Sarang Wadhawan, who were arrested by the Economic Offences Wing (EOW) of the Mumbai Police recently, have been produced before a Mumbai court.

The EOW has also attached their property worth 35 billion rupees.

A case against PMC Bank officials and HDIL chairman has also registered under Section 409, Section 420, Section 465, Section 471 and Section 120 (B) of the Indian Penal Code.

In a related development, former board members of the Punjab Maharashtra Co-operative (PMC) Bank and promoters of real estate firm HDIL have also been charged with money laundering by the Enforcement Directorate (ED) in the Rs 6,500 crore loan default case.

Accordingly, a complaint has also been filed under the Prevention of Money Laundering Act (PMLA).

The ED case is based on a First Information Report (FIR) filed by the EOW of the Mumbai police.

The ED has also conducted searches at six premises in Mumbai and other areas linked to the former chairman of the PMC Bank and HDIL promoters.

The police complaint filed earlier has alleged that PMC officials misled the Reserve Bank of India (RBI)) for more than a decade from 2008 to August 2019.

Besides Rakesh Wadhawan and Sarang Wadhawan, the complaint named the bank's then chairman Waryam Singh and its suspended managing director Joy Thomas, along with other bank officials, and accused them of criminal breach of trust, forgery and falsification of records.