The Enforcement Directorate (ED), Mumbai Zonal Office has provisionally attached 413 agricultural land parcels admeasuring approximately 1,807 acres at Vijaydurg village in Devgad taluka of Sindhudurg district under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in a bank loan fraud case of Punjab and Maharashtra Co-operative Bank (PMC), ED officials said in a statement on Tuesday.
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The attached 1,807 acres have a registered value of ₹52.9 crore, and the proceeds of crime to the tune of ₹82.3 crore were utilised from 2010 to 2013 for acquiring these parcels of land.
“ED initiated the investigation on the basis of FIR registered by Mumbai Police’s Economic Offence Wing (EOW) under various sections of IPC against Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, Sarang Wadhawan and other unknown persons. M/s Housing Development and Infrastructure Pvt Ltd (HDIL), its promoters and other co-accused and accomplices committed fraud by causing a loss of ₹6117.93 crore – principal ₹2540.92 crore and interest ₹3577.01 crore – against Punjab and Maharashtra Co-operative Bank (PMC),” the ED officials said.
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The investigation further revealed that from 2010 to 2013, promoters of HDIL – Sarang Wadhawan and Rakesh Wadhawan – had siphoned off proceeds of crime totalling ₹82.3 crore to the accounts of 39 farmers through their subsidiary companies Viz. M/s Privilege Power and Infrastructure Limited and M/s Privilege Hi-Tech Infrastructure Limited for acquiring lands at Vijaydurg.
“Sarang Wadhawan, in connivance with his employee Mukesh Khadpe, persuaded farmers to acquire lands in their names and transfer the same in the name of HDIL group company in lieu of commission and other benefits. Cash components were also used for acquiring these lands, and after registration of lands at a registered value of ₹52.9 crore, the power of attorney documents were obtained in favour of HDIL Group Company. Though these lands were purportedly acquired for the development of ports, the same was never developed,” the ED official added.
The Wadhawans, from their subsidiary companies accounts of HDIL, diverted PoC to the tune of ₹82.3 crore in the accounts of farmers keeping PMC bank in the dark. Based on the outcome of the investigation, assets having a registered value of ₹52.9 crore has been provisionally attached under PMLA.
Earlier on October 17, 2019, the main accused persons – Rakesh Kumar Wadhawn and his son Sarang Wadhawan – were arrested for their involvement in the offence of money laundering. “A prosecution complaint and 2 supplementary complaints have already been filed against them and 36 other persons and entities. So far, ED has attached assets aggregating to ₹719.11 crore under provisions of the PMLA, 2002. Further investigation is under progress,” the ED official said.