PMC Bank fraud: PMLA court denies interim bail to Rakesh and Sarang Wadhawan

The special Prevention of Money Laundering Act (PMLA) court on Monday refused to grant interim bail to HDIL promoters Rakesh and Sarang Wadhawan in connection with

The special Prevention of Money Laundering Act (PMLA) court on Monday refused to grant interim bail to HDIL promoters Rakesh and Sarang Wadhawan in connection with the ₹6,117.93-crore money laundering case being probed by Enforcement Directorate (ED) in the Punjab and Maharashtra Cooperative (PMC) Bank fraud. The duo cited health issues and claimed that there are no proper facilities in the jail amid the Covid-19 outbreak.

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ED’s counsel, Hiten Venegaokar, objecting their plea argued that the Arthur Road jail is in the red zone, and thus no one is permitted to either enter or exit the prison premises. It was further submitted that it is not advisable to allow a prisoner to go out in society and put others at the risk of contamination. Venegaokar also argued that the high-power committee of the Bombay high court has barred interim bail for those accused in cases under PMLA.

The special court, after hearing both the sides, rejected the plea of Wadhawans made for interim bail.

The central agency initiated probe against the father and son after it came to light that the two obtained loans unlawfully from PMC Bank with the help of other bank officials. ED probed the money laundering allegations against the Wadhawans and listed 19 subsidiary companies of HDIL Group as accused, which allegedly were used by the Wadhawans to launder money. The duo had obtained the loans under the names of these companies.