Mumbai

HDIL's Wadhawans sent to 14 days of judicial custody in PMC fraud

Sarang Wadhawan, promoter of Housing Development Infrastructure Limited. File

Sarang Wadhawan, promoter of Housing Development Infrastructure Limited. File   | Photo Credit: Paul Noronha

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They have played a crucial role in laundering huge amounts of money and are concealing facts

Housing Development Infrastructure Limited’s (HDIL) chairman Rakesh Wadhawan and his son, managing director Sarang have been sent to judicial custody for 14 days in the ₹4,355 crores Punjab Maharashtra Co-operative Bank fraud by the special prevention of money laundering act court on Thursday.

The Enforcement Directorate contended that Mr. Sarang has provided details of loans availed by HDIL and its group companies and also the details of assets being held by the said company. Mr. Rakesh also provided details of loans availed by him and also the companies under his control. They have played a crucial role in laundering huge amounts of money and are concealing facts.

The agency said, “The money trail of the proceeds received from the bank and properties derived from the same are still to be ascertained. It appears from investigation conducted so far as that they are prima facie guilty of offence of money laundering as per PMLA.”

Wadhawans have been charged with section 406 (punishment for criminal breach of trust), 409 criminal breach of trust by public servant, or by banker, merchant or agent), 420 (cheating and dishonestly inducing delivery of property), 465 (punishment for forgery), 467 (forgery of valuable security, will, etc), 471 (using as genuine a forged document or electronic record) of the Indian Penal Code and several provisions of the PMLA.

On October 18, PMLA court has granted ED their custody till October 22 which was extended till October 24.

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Printable version | Dec 12, 2019 7:05:58 PM | https://www.thehindu.com/news/cities/mumbai/hdils-wadhawans-sent-to-14-days-of-judicial-custody-in-pmc-fraud/article29786002.ece

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