The Enforcement Directorate (ED) provision
The ED hooked up the properties of the SGS Group, which owns the mall, beneath the provisions of the Prevention of Cash Laundering Act, 2002 within the Rs 6,117.93 crore fraud case filed by Punjab and Maharashtra Co-operative Financial institution (PMC) towards Housing Growth and Infrastructure Non-public Ltd (HDIL), its promoters and different co-accused.
The ED initiated an investigation on the idea of an FIR filed by PMC towards Pleasure Thomas, Waryam Singh (Administrators of PMC Financial institution), Rakesh Kumar Wadhawan, Sarang Wadhawan and others beneath numerous sections of the IPC.
“The investigation revealed that HDIL and its group companies availed the OD/ Credit Facility from the PMC Bank. Despite repeated defaults in payments by HDIL and its group companies, the OD limits were enhanced from time to time to avoid them being classified as NPA,” the probe company stated in an announcement.
The investigation additionally discovered that Rakesh Wadhawan and his son Sarang Wadhawan had been the principle administrators or promoters and had been authorised to function all of the financial institution accounts of HDIL and its group corporations. In addition they took all key choices of the businesses.
“They, in connivance with other accused/accomplices, have layered the proceeds of crime in the bank accounts of HDIL, and its group companies which were under their direct/ indirect control,” the probe company stated.
It stated that Rakesh Wadhawan and Sarang Wadhawan additionally diverted the “proceeds of crime” into their private financial institution accounts and the financial institution accounts of their shut associates to accumulate belongings. The “proceeds of crime” funds had been despatched to the SGS Group, to mission it as “untainted”.
Rakesh and Sarang are in judicial custody since 2019.
The ED additionally hooked up proceeds of crime price Rs 675.27 crore beneath the provisions of PMLA. Two supplementary complaints have been filed towards them and 36 others to date and additional investigation is on.