ED custody of HDIL promoters extended

Agency identifies 50 more HDIL properties bought from proceeds of money laundering

A special Prevention of Money Laundering Act court on Tuesday extended the ED’s custody of Housing Development Infrastructure Limited’s (HDIL) directors Rakesh Wadhawan and his son Sarang till October 24.

The agency sought their custody on the grounds that they had identified 50 more HDIL properties, which they believe were bought from the proceeds of money laundering. ED had sought their custody for three days for interrogation as they are key conspirators and beneficiaries of money laundering. The remand application said Mr. Sarang had provided details of loans taken by HDIL and its group companies and the assets held by the company. Mr. Rakesh gave details of loans taken by him and the companies under his control. The accused played a crucial role in laundering huge amounts of money and concealing facts.

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

The Wadhawans have been arrested in connection with an alleged ₹4,355-crore money laundering case and the Punjab and Maharashtra Cooperative Bank fraud case. They have been charged under 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), 471 (using as genuine a forged document or electronic record) of the Indian Penal Code and several provisions of the PMLA.

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Printable version | May 31, 2020 1:45:20 PM |

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