Enforcement Directorate attaches 4 floors of Hyderabad hotel in bank loan fraud case

The Enforcement Directorate (ED) has provisionally attached four floors of Hotel One Continental in Hyderabad worth Rs 43.84 crore in connection with a bank loan fraud case filed by Punjab and Maharashtra Co-operative Bank (PMC). The fraud against the bank is said to be to the tune of Rs 6117.93 crore.

The immovable properties, consisting of the second, third, fourth and fifth floors of Hotel One Continent at King Koti Road in Hyderabad, were attached by the ED under the provisions of the Prevention of Money Laundering Act (PMLA).

According to the probe agency, the ED had launched a probe on the basis of a first information report (FIR) filed by the bank against Joy Thomas and Waryam Singh, both directors of PMC Bank, Rakesh Kumar Wadhawan, Sarang Wadhawan, and others under relevant sections of the Indian Penal Code.

It is alleged that the promoters of Housing Development & Infrastructure Pvt Ltd (HDIL), Rakesh Kumar Wadhawan and his son, Sarang Wadhawan, were involved in the fraud. During the scrutiny of the bank accounts of HDIL Group, a probe revealed that the entity had fraudulently siphoned off the proceeds of the crime while allegedly keeping PMC Bank in the dark. Instead, they parked the fraudulently availed loan funds with other entities to project the same as untainted.

During the ED-led probe under the PMLA, it was discovered that the promoters of HDIL had siphoned off Rs 43.84 crore to entities in Hyderabad between 2006 and 2014. The transaction was carried out by Rakesh Wadhwan, disguising it as a legitimate business while keeping PMC Bank uninformed, as per the probe agency.

In October 2019, Rakesh Kumar Wadhawan and his son, Sarang Wadhawan, were arrested in a money laundering case and they are currently in judicial custody. So far, the ED has attached assets aggregating to Rs 719.11 crore under provisions of anti-money laundering laws.

A probe into the case is underway.

Published By:

Srishti Jha

Published On:

Mar 17, 2024

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