The Chairman and Managing Director of real estate developer HDIL were arrested on Thursday in connection with the Rs 6,500 crore loan default case that has hit the Punjab and Maharashtra Co-operative (PMC) Bank. Rakesh Kumar Wadhawan, the Chairman, and Sarang Wadhawan, Managing Director of HDIL were arrested by the Economic Offences Wing (EOW) of the Mumbai Police. Assets worth Rs 3,500 crore of HDIL were also frozen.
PMC Bank crisis: What we know so far
A Special Investigation Team of the Economic Offences Wing (EOW) arrested Rakesh Wadhawan, chairman and managing director of HDIL and his son Sarang Wadhawan for loan default. Both the accused were called by EOW office to join the
During their inquiry, police did not got satisfactory answers to specific questions, following which both were arrested on the basis of certain facts which surfaced during the investigation.
Properties worth around Rs 3,500 crore, belonging to HDIL, have also been frozen by the EOW. Police are collecting more information about the scam and interrogation of the arrested father-son duo is going on. As many as 44 bank accounts of HDIL and associate companies have been identified.
EOW had registered an FIR on Monday against senior officials of HDIL and the PMC Bank for allegedly causing losses to the tune of Rs 4,355.43 crore to the bank.
The FIR was filed under Section 409 (criminal breach of trust by a public servant or banker), 420 (cheating), and 465, 466 and 471 (related to forgery) of the Indian Penal Code along with 120 (b) (criminal conspiracy). A special investigation team (SIT) was formed by the EOW to investigate the case.
The corporate office of Housing Development and Infrastructure Limited (HDIL) at Bandra in western suburbs and Bhandup branch of PMC in eastern suburbs were searched by the EOW, and some important documents were seized.
Police had also issued Look Out Circulars (LOCs) against 17 persons, including Rakesh Wadhawan and his son Sarang, in this connection to ensure that they could not leave the country.