The Enforcement Directorate (ED) in Mumbai announced on Saturday the provisional attachment of immovable properties, including the 2nd, 3rd, 4th, and 5th floors of Hotel One Continent at King Koti Road, Sultan Bajaar, Abids, Hyderabad. The attached properties are valued at ₹43.84 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection to a loan fraud case involving the Punjab and Maharashtra Cooperative (PMC) Bank.
The ED’s investigation was initiated based on a First Information Report filed by PMC against individuals including Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, his son Sarang Wadhawan, and others under various sections of the Indian Penal Code, 1860.
According to ED officials, the Housing Development and Infrastructure Pvt. Ltd. (HDIL), its promoters, and other individuals involved committed a fraud resulting in a loss of ₹6,117.93 crore (₹2,540.92 crore principal and ₹3,577.01 crore interest) against the PMC. The investigation revealed that the promoters of HDIL siphoned off proceeds of crime amounting to ₹43.84 crore to entities in Hyderabad, including My Palace Mutually Aided Cooperative Housing Society and Anish Construct between 2006 and 2014. The transaction was carried out by Mr. Rakesh Wadhawan without the knowledge of the PMC Bank.
Assets worth ₹43.84 crore belonging to Shri Shripad Deshpande’s Group of Companies have been provisionally attached under the PMLA based on the outcome of the investigation.
The main accused individuals, Mr. Rakesh Wadhawan and Mr. Sarang Wadhawan, were arrested on October 17, 2019, for their involvement in money laundering and are currently under judicial custody. Prosecution complaints and two supplementary complaints have already been filed against them and 36 other persons and entities.
The ED has so far attached assets aggregating to ₹719.11 crore under the provisions of the PMLA, 2002, and further investigation is ongoing, according to officials.