On the strength of these shares, the ED said that HDIL has the right for the allotment of under-construction flats measuring 90,250 square feet Floor Space Index (FSI) in Ghatkopar, Mumbai of the developer Aryaman Developers Private Limited. The developer has given the undertaking to ensure not to sell, transfer, alienate or create any third-party rights thereon on completion of the project.
As per a release by ED, an investigation was initiated under the Prevention of Money Laundering Act (PMLA) on basis of an FIR registered on September 30, 2019, by the Economic Offences Wing of Mumbai Police under the provisions of the Indian Penal Code, 1860.
The case was filed against Joy Thomas, the Managing Director of PMC Bank, Waryam Singh, the Chairman of PMC Bank, Sarang Wadhawan, Rakesh Kumar, Kuldip Singh Wadhawan of HDIL and promoters and executives of Somerset Construction Private Limited, Serveall Construction Private Limited, Sapphire Land Development Private Limited, Emerald Realtors Private Limited, Awas Developers and Construction Private Limited, Prithvi Realtors and Hotels Private Limited, Satyam Realtors Private Limited and others for causing wrongful 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, the ED said, 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,” says ED.
As per ED, 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.
The agency further said that instead of declaring them as Non-Performing Asset (NPA) for initiating actions for recovery, the PMC bank officials choose to accommodate the HDIL group.
Due to such criminal acts of promoters of HDIL Group companies, the ED said, PMC bank suffered a huge wrongful loss to the tune of Rs 6,117.93 crore.
The investigation further revealed that Rakesh Wadhawan and other promoters of HDIL had fraudulently utilized the funds taken from PMC bank in various projects by projecting the same as untainted.
During 2011-12, an amount of Rs 233 crore was transferred from the HDIL group companies to group companies of Mukesh Doshi of Mumbai, said the ED, adding 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, the agency also said that 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 Intimation of Disapproval (IOD) deposit with SRA.
“It is also revealed that the promoters of HDIL intend to take a back door exit from the project and approached Aryaman Developers for a settlement at Rs 150 crore. To not to cause hindrance in the ongoing project for slum rehabilitation, an undertaking was taken from the Mukesh Doshi in the form of an affidavit to ensure that the project after development would not fall in the hands of accused Rakesh Kumar Wadhawan,” the ED said.
Therefore, the agency said, the identified proceeds of crime generated out of fraudulently availed loan by HDIL from PMC, lying in the form of Compulsorily Convertible Preference shares of HDIL group companies totalling to Rs 233 Crore are provisionally attached under PMLA.
Earlier, Rakesh Wadhawan and Sarang Wadhawan, the promoters of HDIL were arrested under PMLA on October 17, 2019 and are presently in judicial custody.
A prosecution Complaint has been filed before a special PMLA court against R.K. Wadhawan, Sarang Wadhawan, Waryam Singh and Joy Thomas.