ED attaches Rs 233 crore convertible preference shares of HDIL group companies
The Enforcement Directorate has attached partly paid compulsorily Convertible Preference shares worth Rs 233 crore of HDIL group companies under the provisions of Prevention of Money Laundering Act (PMLA) 2002 in the PMC Bank scam.
On the strength of these shares, HDIL group companies have right for allotment of under-construction flats measuring 90,250 sq ft FSI in Ghatkopar, Mumbai. The flats are being built by Aryaman Developers Pvt Ltd. The developer has given an undertaking that it will not sell/transfer/alienate or create any third-party rights thereon on completion of the project.
The ED initiated investigation under PMLA on the basis of an FIR registered on 30 September 2019 by Economic Offences Wing, Mumbai Police. The FIR had named Joy Thomas (Managing Director) of PMC Bank, Waryam Singh (Chairman), Sarang Wadhawan, Rakesh Kumar Wadhawan, Kuldip Singh Wadhawan of Housing Development Infrastructures Ltd and promoters & executives of Somerset Construction Pvt Ltd, Serveall Construction Pvt Ltd, Sapphire Land Development Pvt Ltd, Emerald Realtors Pvt Ltd, Awas Developers & Construction Pvt Ltd, Prithvi Realtors and Hotels Pvt Ltd, Satyam Realtors Pvt Ltd and others. All these accused were charged of causing a loss to the tune of Rs 4,355 crore to PMC Bank and corresponding gain to themselves.
Investigation under PMLA revealed that in spite of default in payment, HDIL group companies availed loans from PMC from time to time. The mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC Bank officials with the promoters of HDIL.
There was misconduct on the part of PMC officials as they ignored all the prevailing procedures to facilitate promoters of HDIL by extending unusual credit facility.
Instead of declaring them as NPA for initiating actions for recovery, the PMC bank officials chose to accommodate the HDIL group. Due to such criminal act of promoters of HDIL Group companies, PMC bank suffered a huge wrongful loss to the tune of Rs.6117.93 Crore.
Investigation further revealed that Rakesh Wadhawan and other promoters of HDIL, have fraudulently utilized the funds taken from PMC Bank in various projects by projecting the same as untainted.
In 2011-12, an amount of Rs 233 Crore was transferred from the HDIL group companies to group companies of Mukesh Doshi of Mumbai. These funds were finally utilised by Aryaman Developers Pvt Ltd in the Slum Rehabilitation Project developed in Ghatkopar East, Mumbai.
As per the understanding between Rakesh Kumar Wadhawan and Mukesh Doshi, HDIL group of companies would be allotted constructed area of FSI admeasuring 90,250 Sq ft of carpet area in the proposed building.
For the instant project Aryaman Developers had its own investments including loans from bank. The funds were utilised for payment of land premium, rent to slum dwellers, construction of transit camps, fungible premium, construction of rehab and IOD Deposit with SRA.
It is also revealed that the promoters of HDIL intended to take a backdoor exit from the project and hence approached Aryaman Developers for a settlement at Rs.150 Crore.
Also See: HDIL on the verge of liquidation; homebuyers left high and dry
