PMC Bank scam accused Rakesh Wadhawan tests positive for Covid-19

Rakesh Wadhawan, an accused in the ₹6,670 crore Punjab and Maharashtra Co-operative (PMC) bank scam and director of Housing Development Infrastructure Limited (HDIL),

Rakesh Wadhawan, an accused in the ₹6,670 crore Punjab and Maharashtra Co-operative (PMC) bank scam and director of Housing Development Infrastructure Limited (HDIL), lodged in the Arthur Road central prison, has tested positive for Covid-19.

HT Image

Wadhawan was admitted to JJ Hospital last week after he complained of breathlessness. He tested positive on Friday and was shifted to GT Hospital, which is a dedicated Covid facility. Hospital sources said that his condition is stable now.

Deepak Pandey, inspector-general of police (south range) confirmed the development and said that the jail authority would now ask six inmates who were in close contact with Wadhawan in the Arthur Road jail, to undergo Covid-19 test. This includes Wadhawan’s son Sarang Wadhawan as well.

Wadhawan and his son Sarang were arrested on October 3, 2019, by the economic offence wing (EOW) in Mumbai after they were named in the FIR registered by Reserve Bank of India on September 30.

EOW in their charge sheet claimed that Rakesh Wadhawan is the key accused of the fraud as the ‘patriarch’ of the HDIL’s business. He gradually plotted the fraud and obtained loans from the bank with the help of other accused, the agency alleged. The police investigation has revealed that HDIL accounted for 73% of the bank’s total loan book.

On September 23, 2019, the RBI had placed restrictions on PMC Bank and barred it from proceeding fresh loans or accepting deposits.

The EOW has arrested a total of 15 people in the case. All accused have been booked under relevant sections of the Indian Penal Code.