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Thursday, Nov 21, 2019

In PMC bank case, HDIL promoters Rakesh, Sarang Wadhwan sent to ED custody till Oct 22

The special PMLA court on Friday remanded Rakesh Kumar Wadhawan and his son Sarang Wadhawan accused in PMC bank fraud case to ED custody till October 22.

mumbai Updated: Oct 18, 2019 19:33 IST
Charul Shah
Charul Shah
Hindustan Times, Mumbai
The father-son duo were produced before the court on Friday afternoon after ED obtained their custody from the jail.
The father-son duo were produced before the court on Friday afternoon after ED obtained their custody from the jail. (Photo: Satyabrata Tripathy/Hindustan Times)
         

The special PMLA court on Friday remanded Rakesh kumar Wadhawan and his son Sarang Wadhawan accused in the PMC bank fraud case to ED custody till October 22.

The two were produced before the court on Friday afternoon after ED obtained their custody from the jail. On their production, ED sought the father-son duo’s custody for seven days.

The court rejected the plea, observing no case is made out to give custody for seven days. While seeking police custody of Wadhawans’, ED’s lawyer Kavita Patil argued that the case is registered on the basis of offence registered by the Economic Offence Wing (EOW) for criminal conspiracy and cheating PMC bank.

Patil apprised the court about the case registered by EOW for obtaining loan from the PMC bank in connivance with bank officials to the tune of Rs 4355 crores. It was submitted that the loan was disbursed over a period of time through various dummy accounts.

“We need to find a money trail of the loan amount and that is why ED needs their custody for questioning. The two accused are the actually beneficiary of the proceeds of crime,” Patil argued while seeking seven day custody of Wadhwans’.

Senior advocate Amit Desai, who appeared for Wadhwans claimed that the agency has not followed a procedure while obtaining their custody. Desai argued that Wadhwans’ had offered the bank a solution by way of selling of assets to repay the loan much before the offense was registered.

“There were meetings with first board of the bank and later with administrator. We have given several security and also given a list of assets supported by report of valuator. There were enough of security provided to the bank and later to administrator. Before Wadhwans’ and bank could work out solution, case was registered. Now the assets are also attached,” Desai argued.

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