Raids come after CEO and Managing Director of HDIL were arrested on Thursday
Enforcement Directorate conducted searches on six locations in Mumbai on Friday in connection with the PMC Bank Fraud. The Investigative agency also registered an (ECIR) Enforcement Case Information Report against erring bank officials on the basis of Mumbai Police’s FIR.
ED conducted searches after the Mumbai Police’s Economic Offences Wing (EOC) arrested the CEO and managing director of HDIL on Thursday. EOC is currently investigating the nexus between PMC Bank and defunct realty major HDIL (Housing Development and Infrastructure Limited).
Some startling details about how loans were given to now-defunct HDIL has emerged as police dug deeper in the case. The police said on Thursday that the bank officials helped the HDIL bosses by depositing money in their personal accounts. It is alleged that around Rs 2,000 crore was directly deposited into HDIL bosses’ personal accounts while the loans were sanctioned officially on the name of the company.
Chairman and Managing Director of HDIL Rakesh Kumar Wadhawan and Sarang Wadhawan have been arrested and taken into custody by the Mumbai Police. The Police also registered a case against the bank officials and Wadhawans for forgery, cheating and several other violations.
Wahawans were arrested after they failed to cooperate with the Investigators
Both the Wadhawans were summoned by the SIT of EOW for questioning in the case on Thursday as well. They were arrested after they failed to cooperate with the investigators. Company’s assets worth Rs 3,500 crore have been frozen by the investigating authorities.
The confession letter of Joy Thomas, Suspended PMC managing director revealed that top bank officials helped HDIL in getting loans. The letter said that bank officials created 44 hidden accounts and secured it with passwords to protect them from getting detected by the RBI officials at the time of audits.
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