PMC Bank case: ED objects to sale of cars of HDIL directors

The Enforcement Directorate (ED) objected to the sale of the 14 cars belonging to the directors of Housing Development and Infrastructure Limited’s (HDIL) directors

The Enforcement Directorate (ED) objected to the sale of the 14 cars belonging to the directors of Housing Development and Infrastructure Limited’s (HDIL) directors Rakesh Wadhawan and his son, Sarang, that were seized by the agency in the Punjab Maharashtra Co-operative (PMC) fraud case.

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The ED was responding to an application regarding the sale of HDIL’s perishable properties filed by the economic offences wing (EOW) of the Mumbai Police in the Esplanade court, on Friday. These properties include a yacht, two aircraft and 14 vehicles, which are not mortgaged with PMC Bank.

The agency claimed that as these properties were seized under the Prevention of Money Laundering Act (PMLA), 2002, which provides for a separate procedure to dispose of the seized properties, they cannot be sold before the Adjudicating Authority (AA) passes its decision.

In its reply, the ED claimed that it has no objection to the sale of the yacht and two airplanes since they are seized by the EOW. The agency, however, claimed that an application has already been made before the AA under the PMLA for the retention of the said properties and only after AA’s confirmation can a decision be taken on the procedure to dispose of the properties.

The counsel for the ED, Kavita Patil, submitted before the court that as the properties were seized by the ED under PMLA, a separate procedure needs to be followed with regards to the properties seized by the ED.

After hearing both the sides, the court may pass an order on the application on Monday.