PMC Bank fraud: Rakesh and Sarang Wadhawan’s interim bail cancelled

In March, the Wadhawans had obtained interim bail from the magistrate court on the ground of coronavirus disease (Covid-19) outbreak.

A metropolitan magistrate at Mumbai’s Esplanade court on Tuesday allowed the plea of the Economic Offence Wing (EOW) of Mumbai Police for cancellation of interim bail to HDIL promoter Rakesh Wadhawan and his son Sarang, who are accused in the multi-crore Punjab & Maharashtra Cooperative (PMC) Bank fraud case.

Rakesh Wadhwan(C) and Sarang Wadhawan(R) produced at Killa Court by EOW in Mumbai, India, on Friday, October 4, 2019. (Anshuman Poyrekar/ Hindustan Times)

In March, the Wadhawans had obtained interim bail from the magistrate court on the ground of coronavirus disease (Covid-19) outbreak.

Soon after the order, EOW sought a stay on the order and moved for cancellation of the bail. The court had immediately stayed order till further direction.

Special public prosecutor Ajay Missar said, the court after hearing the plea of the agency, cancelled the bail. The prosecution argued that while obtaining bail, the defence did not inform the agency. It also pointed out that as per the direction of the high-power committee, the accused booked for economic offences are not eligible for interim bail.

Rakesh and his son Sarang Wadhawan were arrested on October 3, 2019, by EOW authorities in connection with the PMC fraud case.

EOW in their charge sheet claimed that Rakesh is the key accused of the fraud as the ‘patriarch’ of the HDIL’s business. He gradually plotted the fraud and obtained loans from the bank with the help of other accused, the agency alleged.