ED Seizes Hotel Floors Worth Rs. 43.84 Crore in Landmark Bank Loan Fraud Case
(Judicial Quest News Network)
In a significant development, the Directorate of Enforcement (ED), Mumbai, has provisionally attached immovable properties comprising the 2nd, 3rd, 4th, and 5th floors of Hotel One Continent at King Koti Road, Sultan Bajaar, Abids, Hyderabad, valued at Rs. 43.84 Crore.
This action is taken under the stringent provisions of the Prevention of Money Laundering Act (PMLA), 2002, linked to the Punjab & Maharashtra Cooperative Bank (PMC) bank loan fraud case.
The investigation, initiated on the basis of an FIR filed by the PMC Bank against key figures including Joy Thomas and Waryam Singh, directors of PMC Bank, as well as Rakesh Kumar Wadhawan and Sarang Wadhawan, among others, has uncovered a colossal fraud totaling Rs. 6117.93 Crore.
Housing Development & Infrastructure Pvt Ltd (HDIL), along with its promoters and accomplices, stands accused of orchestrating this fraud, leading to significant losses for PMC Bank.
Delving into the specifics, the investigation unearthed that between 2006 and 2014, the promoters of HDIL illicitly funneled Rs. 43.84 Crore of Proceeds of Crime to entities in Hyderabad, namely M/s My Palace Mutually Aided Cooperative Housing Society & M/s Anish Construct.
This transaction, facilitated by Rakesh Wadhawan, was disguised as legitimate business activities, deceiving PMC Bank.
Significantly, the main accused, Rakesh Kumar Wadhawan and his son Sarang Wadhawan, were apprehended on 17.10.2019 for their involvement in money laundering and are currently in judicial custody.
Prosecution complaints have been filed against them and 36 others, with assets worth Rs. 719.11 Crore already seized under the PMLA, 2002.
This recent seizure underscores the ED’s commitment to unraveling complex financial crimes and holding perpetrators accountable. Investigations into this case continue to unfold.
