PMC fraud case: HDIL promoters sent to ED custody till October 22

MUMBAI: A special Prevention of Money Laundering (PMLA) court on Friday remanded Housing Development Infrastructure Limited (HDIL) promoter Rakesh Kumar Wadhawan and his son Sarang Wadhawan until October 22 to custody of the Enforcement Directorate (ED) in the case of fraud at Punjab and Maharashtra Co-Operative (PMC) Bank.

The two were produced before the court on Friday afternoon by the ED, which sought their custody for seven days. The court said no case had been made out for keeping them in custody as long as seven days, allowing custody only until October 22.

While seeking police custody of the duo, ED’s lawyer Kavita Patil argued that a case had been registered against them on the basis of offences registered by the Economic Offence Wing (EOW) for cheating PMC Bank and criminal conspiracy.

Patil apprised the court about the case registered by the EOW which cited loans to the tune of Rs 4,355 crore the Wadhawans obtained from PMC Bank in connivance with bank officials. The loan were disbursed over a period of time through dummy accounts, the court was told.

“We need to find a money trail of the loan amount and that is why ED needs their custody for questioning. The two accused are the actually beneficiaries of the proceeds of crime,” Patil argued.

Senior advocate Amit Desai, who appeared for Wadhwans, argued that his clients had offered to sell assets to repay the loans. “Before the Wadhwans and the bank could work out a solution, a case was registered. Now the assets are also attached,” Desai said.

THE TWO WERE PRODUCED BEFORE THE COURT ON FRIDAY AFTERNOON BY THE ED, WHICH SOUGHT THEIR CUSTODY FOR SEVEN DAYS