PMC Bank fraud: PMLA court rejects bail plea of Rakesh and Sarang Wadhawan

In their bail pleas, the Wadhawans had claimed that they were ready to repay the loans taken from the bankrupt bank.
The Wadhawans claimed that they had provided enough collateral security in the form of immovable properties while taking out the loans. Photo by Aniruddha Chowdhury/Mint
The Wadhawans claimed that they had provided enough collateral security in the form of immovable properties while taking out the loans. Photo by Aniruddha Chowdhury/Mint
Updated on Jul 14, 2020 05:27 PM IST
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Hindustan Times, Mumbai | By Charul Shah

A special court under Prevention of Money Laundering Act (PMLA), 2002, on Tuesday rejected the bail pleas of the promoters of Housing Development and Infrastructure Ltd (HDIL), Rakesh Wadhawan and his son Sarang, who are behind bars, for their alleged links to the Rs 6,500-crore Punjab and Maharashtra Cooperative (PMC) Bank fraud case.

In their bail pleas, the Wadhawans had claimed that they were ready to repay the loans taken from the bankrupt bank.

They also claimed that they had provided enough collateral security in the form of immovable properties while taking out the loans.

However, the prosecution objected to their contentions, citing that the value of the properties that were submitted as collateral security was far less than shown on paper.

The court rejected the bail pleas after taking into account the arguments of both parties.

Rakesh, who has been found to be infected with SARS-CoV-2, which causes coronavirus disease (Covid-19), had moved his bail plea on health ground.

His lawyers also moved a plea, seeking his transfer to a private hospital from a government-run facility.

The court was informed by the prison authorities that initially, he was taken to JJ Hospital, which doesn’t have a Covid-19 facility, and later he was shifted to GT Hospital, where he is undergoing treatment.

On Tuesday, his lawyer Subodh Desai argued that Rakesh is suffering from several serious ailments, including gastrointestinal bleeding.

He requested the court for a report from GT Hospital authorities, stating they have all the facilities to treat his multiple ailments.

The court paid heed to Desai’s plea and directed GT Hospital to submit a report.

The court will hear the plea next on Wednesday (July 15).

Earlier, the Wadhawans were booked by the Mumbai Police’s Economic Offences Wing (EOW) after they had defaulted on the repayment of the loans taken from PMC bank.

The accused are said to have conspired with bank officials and took loans without submitting adequate collateral security.

The Enforcement Directorate (ED) also initiated a probe into money laundering allegations after EOW registered the case.

ED has claimed in its charge sheet that the loan amount obtained from PMC was used to repay debts of other group companies, business, and cash requirements, meet personal expenditures, and for repayment of loans.

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Saturday, October 16, 2021