Mumbai

Complaints pour in against HDIL group

The depositors write a letter to Ms. Sitharaman with a list of their demands on Thursday.

The depositors write a letter to Ms. Sitharaman with a list of their demands on Thursday.   | Photo Credit: Prashant Nakwe

Economic Offences Wing’s housing unit to begin inquiries into allegations, register FIRs based on merit

The legal troubles of Housing Development and Infrastructure Limited (HDIL) are likely to mount with complaints pouring in against the group since the arrest of its promoters, Rakesh and Sarang Wadhawan, on October 3.

The Economic Offences Wing (EOW) of the Mumbai Police had arrested the Wadhawans in connection with the alleged unsecured loans given to the group by Punjab and Maharashtra Cooperative (PMC) Bank over several years. The EOW has also arrested PMC Bank’s former managing director Joy Thomas and former chairman Waryam Singh in the case.

Denied possession of house

According to EOW officers, several people have been contacting the agency following the arrest of the Wadhawans with a variety of complaints. A senior EOW officer said, “The complaints are pertaining to the HDIL group’s construction projects in Mumbai and nearby cities. Most of the complainants have alleged that the group did not give them possession of their houses despite making the payment several months or years ago. We have been receiving complaints mostly through phone calls and text messages. Around 10 to 12 written complaints have also been submitted, which we are examining now.”

The officer said these complaints will be forwarded to the EOW’s housing unit and action will be taken based on the merit of the complaints. The officer said, “The housing unit will initiate preliminary inquiries into the complaints and register FIRs wherever there are enough grounds to do so. Any other complaints that we receive in writing will be treated in the same manner.”

Desperate measures: PMC Bank depositors run into the police on entering the BJP headquarters in Nariman Point to meet Union Finance Minister Nirmala Sitharaman. (Right)

Desperate measures: PMC Bank depositors run into the police on entering the BJP headquarters in Nariman Point to meet Union Finance Minister Nirmala Sitharaman. (Right)   | Photo Credit: Prashant Nakwe

The EOW is still examining bank accounts and assets of Mr. Thomas and Mr. Singh, both of whom are in police custody.

The officer said, “We are looking for concrete evidence to prove that the accused received any kind of illegal gratification in exchange for extending unsecured loans to the HDIL group. So far, no assets that indicate this have come to light. We are also checking the bank’s financial records to find out if similar loans were extended to other borrowers.”

Auditors to be quizzed

The interrogation of the accused has established that the bank did not include HDIL’s name in its list of large borrowers, resulting in the fraud going undetected during repeated audits.

“We will also be calling the auditors for questioning to find out if there was any wilful negligence on their part,” the officer said.

A letter from the Editor


Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | May 30, 2020 5:03:58 AM | https://www.thehindu.com/news/cities/mumbai/complaints-pour-in-against-hdil-group/article29650489.ece

Next Story