HDIL’s father-son promoters arrested in PMC Bank fraud

Builder Group’s ₹3.5k-Cr Assets ‘Attached’: EOW


Rakesh Wadhawan, executive chairman of HDIL, and his son Sarang aka Sunny, vice-chairman and MD of the real estate group, were arrested on Thursday over their alleged role in the Rs 4,356-crore Punjab and Maharashtra Cooperative Bank fraud. The city police’s economic offences wing (EOW) has also provisionally attached residential and commercial projects and land parcels worth over Rs 3,500 crore.


The duo was initially summoned to the EOW headquarters on the police commissionerate compound near Crawford Market. The two reportedly did not cooperate and were placed under arrest on allegations of cheating and criminal conspiracy, according to police officials. “Their interrogation is on,” said EOW chief Rajvardhan Sinha.

Housing Development and Infrastructure Ltd (HDIL), which is facing bankruptcy proceedings, and its group companies had taken huge loans from PMC Bank in violation of RBI norms.


PMCB withdrawal limit hiked to ₹25k
RBI on Thursday raised the withdrawal limit for PMC Bank depositors to Rs 25,000 from Rs 10,000. The decision, which will enable 70% of the bank’s customers withdraw their entire balance, is aimed at reducing the hardship of depositors, the RBI said, adding that it came after reviewing the bank’s liquidity position. P 2

EOW searches ex-PMC Bank chairman home

As on March 31, the outstanding loan amount against Rakesh Wadhwan was Rs 1,903 crore and his son Rs 129 crore. That apart, HDIL group had been granted loans totalling Rs 1,306 crore.

The FIR lodged by Jasbir Singh Matta, manager, recovery department, PMC Bank, said the wrongfully advanced loans amounted to Rs 4,355.5 crore. RBI sources said the group’s final total exposure in the bank is yet to be assessed. As many as 21,049 fictitious accounts were allegedly created to hide loans, which the bank disbursed in violation of RBI norms. By doing this, it managed to prevent the loans from showing up as large exposures in its core banking system and avoided RBI probe.

Joy Thomas, suspended MD of PMC, had on September 19 written to the RBI placing the bank’s exposure to the group at over Rs 6,500 crore, representing almost three-fourths of its assets of Rs 8,800 crore, and four times the regulatory cap. Police said they were verifying the titles of the attached properties. “We will file an application before the court to attach these properties which were submitted as collateral with PMC Bank alone and no other bank,” said an officer.

EOW’s special investigation team on Thursday searched the residence of Waryam Singh, former bank chairman, and found details of his demat account. “We have frozen Singh’s Rs 100 crore demat account,” said an officer. Investigators said 44 accounts opened in the name of the accused, HDIL, and entities belonging to the accused, were found to be password-protected. Some of these accounts were opened as early as in 2008. “These accounts were not fouind in bank records. They could be accessed only with passwords by certain confidantes of Thomas. We are interrogating them,” said an officer. Wadhwans are being interrogated by DCP Shrikant Paropkari and inspector Kishor Parab.