PMC bank case: HDIL promoters sent to judicial custody

The promoters of Housing Development Infrastructure Limited (HDIL), Rakesh Kumar Wadhawan and his son Sarang, arrested by the Enforcement Directorate (ED) in connection

The promoters of Housing Development Infrastructure Limited (HDIL), Rakesh Kumar Wadhawan and his son Sarang, arrested by the Enforcement Directorate (ED) in connection with their money-laundering probe into the Punjab and Maharashtra Co-operative (PMC) Bank scam case, were sent to judicial custody for fourteen days on Thursday.

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On September 30, the ED had registered a case against HDIL, its directors and group

companies, as well as employees of PMC Bank, for offences under PMLA. The ED alleged that the Wadhawans, along with PMC Bank’s former managing director Joy Thomas and ex-chairperson Waryam Singh, illegally availed loans from PMC Bank amounting to ₹4,355 crore and cheated the bank and its depositors. The ED said that it had found incriminating documents that pointed to the accused siphoning and misusing funds.

The agency has been stating that the Wadhawans are the actually beneficiaries of the proceeds of crime.

A special Prevention of Money Laundering Act (PMLA) court had earlier given permission to the ED to arrest the Wadhawans, who had previously been arrested by the economic offences wing (EOW) of the Mumbai Police.