HYDERABAD: The Enforcement Directorate (ED) provisionally attached immovable properties, including the 2nd, 3rd, 4th and 5th floors of Hotel One Continent on King Koti Road in Abids, amounting to Rs 43.84 crore in the bank loan fraud case of Punjab and Maharashtra Cooperative (PMC) Bank, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Based on an FIR registered against Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, Sarang Wadhawan, and other unknown individuals under various sections of the IPC, the ED initiated an investigation against Housing Development & Infrastructure Pvt Ltd (HDIL), its promoters and other co-accused/accomplices. They are alleged to have committed fraud, resulting in a loss of Rs 6,117.93 crore (principal Rs 2,540.92 crore and interest Rs 3,577.01 crore) to the PMC Bank.
During the investigation, based on specific inputs and scrutiny of bank accounts of the HDIL Group, it was revealed that from 2006 to 2014, the promoters of HDIL had siphoned off proceeds of crime amounting to Rs 43.84 crore to entities in Hyderabad: My Palace Mutually Aided Cooperative Housing Society and Anish Construct. This transaction was carried out by Rakesh Wadhwan, portraying it as a legitimate business while keeping the PMC Bank unaware.
On October 17, 2019, the main accused persons, Rakesh Kumar Wadhawan and his son Sarang Wadhawan, were arrested for their involvement in the offence and both are currently under judicial custody. So far, ED has attached assets worth Rs 719.11 crore in the case.