EOW seeks court’s permission to sell Wadhawan’s seized property

The city police’s economic offences wing (EOW) officers on Tuesday sought the court’s permission to sell some of the Wadhawan family’s movable properties to recover

The city police’s economic offences wing (EOW) officers on Tuesday sought the court’s permission to sell some of the Wadhawan family’s movable properties to recover money in the ₹4,355-crore fraud at the Punjab and Maharashtra Co-operative (PMC) Bank.

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“We have moved an application in the 47th magistrate court seeking permission to sell of properties of Rakesh Kumar and Sarang Wadhawan, promoters of Housing Development and Infrastructure Limited (HDIL), to recover money for depositors of the fraud-hit PMC Bank,” said an EOW officer.

The Wadhawans have consented to the sale and the Reserve Bank of India’s (RBI) administrator for PMC Bank has also been informed of the same.

“We have initiated the process of recovery with the help of section 102 (which allows police officers to seize any property which may be alleged or suspected to have been found under circumstances which create suspicion of the commission of any offence) of Criminal Procedure Code,” said the officer.

These assets include two aircraft – a Bombardier Challenger 300 VT and a Falcon 2000 VT –owned by Privilege Airways Private Limited (linked to HDIL); an 88-foot long Ferretti 881 HT yacht owned by Sapphire Land Development Private Ltd (part of the HDIL group); and 10 luxury cars including a Rolls Royce, Bentley, Range Rover and Audi, sources said.

EOW officials have so far provisionally attached properties worth ₹4,000 crore and the ED has seized assets amounting to more than ₹3,830 crore – all of which are suspected to be proceeds of crime.

“The [auctioned] properties may not cover all the fraud money, but we aim to give some relief to the bank and its depositors. Presently, these properties are in the ED’s possession. They would be auctioned after taking a no-objection certificate from the ED,” said the EOW officer.

Acting on the EOW’s application the EOW has sent notices to the lawyers of the accused. Once auctioned, the money obtained from the sale of these assets will be given directly to PMC Bank.