PMLA court denies bail to Wadhawans in PMC Bank fraudUpdated: Jul 15, 2020 02:21 IST
A special Prevention of Money Laundering Act (PMLA) court on Tuesday rejected the bail applications of Housing Development and Infrastructure Ltd (HDIL) promoters Rakesh Wadhawan and his son Sarang Wadhawan, who are arrested in the multi-crore Punjab and Maharashtra Cooperative (PMC) Bank fraud case.
The Wadhawans had claimed they were ready to repay the bank’s loans and had provided enough collateral security in the form of immovable properties while taking the loan. However, the prosecution objected to their contentions, stating that the value of the properties, which were submitted as security, was far less than shown. The court rejected the bail plea after considering arguments from both sides.
Meanwhile, lawyers of Rakesh Wadhawan, who recently tested positive for Covid-19, had pleaded to the court to consider his health before issuing an order. They had also moved an application to transfer him to a private hospital from GT Hospital, a government facility, where he is currently admitted.
Police officials informed the court that Rakesh was first taken to JJ Hospital, but as it did not have a Covid-19 ward, he was transferred to GT Hospital.
His lawyer, Subodh Desai, on Tuesday argued that Rakesh has been suffering from several serious ailments, including gastrointestinal bleeding. The lawyer requested the court for a report from GT Hospital, clarifying if they have all the facilities to treat his illnesses. The court asked for a report from GT Hospital and has scheduled the next hearing for Wednesday.
Rakesh and Sarang were booked by the economic offence wing (EOW) of Mumbai Police after they defaulted on repayment of a loan taken from PMC Bank. The two allegedly conspired with senior bank officials to secure the loan without proper security. After the EOW case, the Enforcement Directorate (ED), too, initiated a probe into money laundering allegations against the duo.