The Enforcement Directorate (ED) has attached partly paid compulsorily convertible preference shares of Housing Development and Infrastructure Limited (HDIL) group companies worth ₹233 crore in connection with the Punjab & Maharashtra Co-operative (PMC) Bank scam involving ₹6,117.93 crore. On the strength of these shares, the HDIL group had the rights for the allotment of flats under construction, measuring 90,250 sq ft floor space index in Mumbai’s Ghatkopar, of the developer Aryaman Developers Private Limited, said the agency. The developer has given an undertaking to not sell, transfer, alienate or create any third party rights on the attached portion.
The ED probe is based on a First Information Report registered by the Economic Offences Wing of the Mumbai police against Joy Thomas, the then managing director of the bank; then chairman Waryam Singh; and Sarang Wadhawan and Rakesh Wadhawan of HDIL.
Promoters and executives of Somerset Construction, Serveall Construction, Sapphire Land Development, Emerald Realtors, Awas Developers & Construction, Prithvi Realtors and Hotels, and Satyam Realtors were also named.
According to the ED, in spite of defaulting on repayments, the HDIL group companies got loans from the bank from time to time. “The mode and manner of operation of bank accounts of HDIL clearly indicates the connivance of PMC Bank officials with HDIL promoters,” said the agency.
It is alleged that the bank officials ignored all the prevailing procedures to facilitate credit facilities. Instead of declaring the accounts as non-performing assets to initiate action for recovery of the dues, the officials chose to accommodate the HDIL group.
The ED alleged that Rakesh Wadhawan and others used the funds in various projects by projecting the same as untainted. In 2011-12, ₹233 crore was transferred to the firms of one Mukesh Doshi of Mumbai. The money was invested by Aryaman Developers in the Slum Rehabilitation Project developed in Ghatkopar East.
Rakesh and Sarang Wadhawan were earlier arrested by the ED in October 2019. They are currently in judicial custody. A charge-sheet has been filed against the accused persons.
