Wednesday, October 28, 2020

India: Enforcement Directorate Files Money-laundering Case Against Board Members of Punjab Maharashtra Co-operative (PMC) Bank

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The Enforcement Directorate on Friday registered a money laundering case against the board members of Punjab Maharashtra Co-operative (PMC) Bank and the promoters of crisis-hit real estate firm Housing Development and Infrastructure Ltd (HDIL)  in connection with multi-crore loan default case.

The probe agency raided six locations in Mumbai and adjoining areas linked to the former chairman of the PMC bank and promoters of  HDIL after a criminal compliant was filed under the Prevention of Money Laundering Act (PMLA ) by the central agency. ED sources said that the raids are aimed at gathering additional evidence.

This comes a day after Rakesh Wadhawan and Sarang Wadhawan, senior executives at HDIL were arrested by the Economic Offences Wing (EOW) of the Mumbai Police in connection with the Rs 4,355-crore fraud.

The father-son duo were summoned to the EOW office of Mumbai Police and when the sleuths found that they were not cooperating in the probe, they arrested them. “We have arrested the two accused and their interrogation is on,” said EOW chief Rajvardhan Sinha had said.

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It is alleged that HDIL, which is facing bankruptcy proceedings, and its group companies had taken huge loans from PMC Bank.

The FIR was filed by by Jasbir Singh Matta, manager, recovery department, of PMC Bank. It is also alleged that as many as 21,049 fictitious bank accounts were allegedly created to hide the loans, which were disbursed in violation of the Reserve Bank of India (RBI) norms.

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