ED attaches `233 cr worth preference shares of HDIL firms in PMLA case

The Enforcement Directorate (ED) attached partly paid Compulsorily Convertible Preference shares of Housing Development Infrastructures Ltd (HDIL) group companies totaling to Rs 233 crore under the provisions of Prevention of Money Laundering Act (PMLA) in the PMC Bank scam, the agency officials informed on Thursday.

On the strength of these shares, HDIL has the right for allotment of under construction flats admeasuring 90,250 square feet FSI in Ghatkopar, of the developer M/s Aryaman Developers Pvt Ltd. The developer has given an undertaking to ensure not to sell/transfer/alienate or create any third party rights thereon on completion of the project.

The ED had initiated an investigation under the PMLA on the basis of FIR dated 30.09.2019 registered by the Economic Offences Wing of the Mumbai Police on September 30, 2019 under the provisions of Indian Penal Code against Joy Thomas (Managing Director) of PMC Bank, Waryam Singh (Chairman), Sarang Wadhawan, Rakesh Kumar Kuldip Singh Wadhawan of HDIL and promoters and executives of M/s Somerset Construction Pvt Ltd, Serveall Construction Pvt Ltd, Sapphire Land Development Pvt Ltd, Emerald Realtors Pvt Ltd, Awas Developers & Construction Pvt Ltd, Prithvi Realtors and Hotels Pvt Ltd, Satyam Realtors Pvt Ltd and others for causing wrongful loss to the tune of Rs 4355 Crore to PMC Bank and corresponding gain to themselves.

The agency claimed, "Investigation under PMLA revealed that in spite of default in payment, HDIL group companies availed loans from PMC from time to time. The mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC Bank officials with the promoters of HDIL. There was misconduct on the part of PMC officials as they ignored all the prevailing procedures to facilitate promoters of HDIL by extending an unusual credit facility. Instead of declaring them as NPA for initiating actions for recovery, the PMC bank officials choose to accommodate the HDIL group. Due to such criminal act of promoters of HDIL Group companies, PMC bank suffered a huge wrongful loss to the tune of Rs 6117.93 Crore."

"Investigation further revealed that Rakesh Wadhawan and other promoters of HDIL, have fraudulently utilized the funds taken from PMC Bank in various projects by projecting the same as untainted. During the year 2011-12, an amount of Rs 233 crore was transferred from the HDIL group companies to group companies of Mukesh Doshi of Mumbai,” the ED said.

It further said that these funds were finally utilised by Aryaman Developers Pvt Ltd in the Slum Rehabilitation Project developed in Ghatkopar East.