In the PMC bank scam case, ED attaches a 1,807-acre land lot in Sindhudurg.

NEW DELHI: 413 agricultural land parcels in Sindhudurg, Maharashtra, totaling over 1,807 acres have been attached by the Directorate of Enforcement (ED) about a bank loan fraud case involving Punjab and Maharashtra Co-operative Bank (PMC).

The agency stated on Tuesday that the 1,807 acres that were attached had a registered value of Rs 52.90 crore, adding that between 2010 and 2013, the proceeds of crime of Rs 82.30 crore were used to purchase these land lots.

According to the terms of the Prevention of Money Laundering Act (PMLA), 2002, the attached land is situated in Vijaydurg village in Taluka Devgarh region in Sindhudurg district.

Based on its investigation and an FIR filed by EOW, Mumbai Police under various sections of IPC, 1860 against Joy Thomas, Waryam Singh (Directors of PMC Bank), Rakesh Kumar Wadhawan, Sarang Wadhawan, and other unidentified individuals, the Mumbai Zonal office of ED attached the 413 agricultural land parcels.

To perpetrate fraud against Punjab and Maharashtra Co-operative Bank (PMC), Housing Development and Infrastructure Pvt Ltd (HDIL), its proprietors, and other co-accused and accomplices caused a loss of Rs 6,117.93 crore (principal Rs 2,540.92 crore and interest Rs 3,577.01 crore).

According to an ED investigation, between 2010 and 2013, the promoters of HDIL, Sarag Wadhawan and Rakesh Wadhawan, siphoned off Rs. 82.30 crore in proceeds of crime to 39 farmers’ accounts through Privilege Power and Infrastructure Limited and Privilege Hi-Tech Infrastructure Limited, their subsidiary companies. The farmers used the money to purchase land in the Vijaydurg district of Sindhudurg.

“Sarang Wadhawan, in connivance with his employee Mukesh Khadpe, persuaded farmers to acquire lands in their names and transfer the same in the name of HDIL group company instead of commission and other benefits,” according to the ED.

“After the lands were registered at a registered value of Rs 52.90 crore, power of attorney documents were obtained in favor of HDIL Group Company. Cash components were also utilized for the acquisition of these lands.” Even though these properties were supposedly purchased to build ports, nothing ever came of them. From the accounts of their HDIL subsidiary firms, Sarang and Rakesh Wadhawan transferred PoC totaling Rs 82.30 Crore into the accounts of farmers while keeping PMC bank in the dark. Assets with a registered value of Rs 52.90 crore have been provisionally attached under PMLA based on the investigation’s findings.”

Rakesh Kumar Wadhawan and his son Sarang Wadhawan were the primary accused individuals who were taken into custody on October 17, 2019, due to their alleged involvement in money laundering.

They have already been the target of two other complaints and a prosecution complaint, together with 36 other individuals and organizations. As per the terms of PMLA, 2002, ED has attached assets totaling Rs 719.11 crore thus far.