PMC Bank case: ED nod for sale of Rs. 200 cr worth properties of Wadhwans

The Enforcement Directorate has given its nod for the sale of two private jets and a yacht owned by HDIL promoters Rakesh Kumar Wadhawan and Sarang Wadhawan in connection with the PMC Bank scam. On Thursday, in a reply filed in a court on a petition of PMC administrators seeking detachment of Wadhwans' properties, the Enforcement Directorate (ED) said it has no objection to the sale of jets and yacht worth around Rs. 200 crores. The court will pass an order on the sale of the three properties on November 25.

"The ED does not have any objection for the disposal of the aeroplanes and yachts by the EOW (Economic Offence Wing of Mumbai Police)," the agency submitted in the court of Chief Metropolitan Magistrate. The sale of the two jets and yacht has received no-objection from all the parties in the case.

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The Punjab and Maharashtra Bank (PMC), through its RBI-appointed administrators, had moved the court seeking the sale of HDIL's attached and mortgaged properties to repay its depositors. However, the ED said that it can't give NOC for attached cars as it's being considered by Adjudicating Authority under PMLA (Prevention of Money-laundering Act), adding that it has not attached any mortgaged property of the Wadhwans.

In September, the RBI had restricted activities of the PMC Bank for six months and asked it not to grant or renew any loans and advances after major financial irregularities were reported. PMC Bank is a multi-state scheduled urban cooperative bank with operations in Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh, and Madhya Pradesh. With a network of 137 branches, it ranks among the top 10 cooperative banks in the country.

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ED raids Wadhawans' properties

In two raids properties last month, the ED had seized several luxury cars including Bentley RW, BMW-RW, Rolls Royce Phantom-RW, two Mahindra Scorpios, Mercedez Benz, two Range Rovers, Toyota Innova, Toyota Fortuner, an Audi Q7 and two electric cars owned by the Wadhwans who are currently in the ED custody.

They also attached a private jet in the name of Privilege Airways Private Ltd (Bombardier challenger - 300 9 seater VT) which is in the Maldives at this time. Furthermore, two golf carts were also recovered from the bungalow. A speed boat that was often used by the Wadhawans has come under the scanner as well. On October 5, the ED attached their jewellery worth Rs 60 crore. 

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About the scam

The police registered a First Information Report (FIR) against the top officials of the PMC Bank and the promoters of the HDIL. According to the prosecution, the bank continued giving loans to the debt-ridden HDIL from 2008 to 2019 despite the previous loans not being repaid. Several sections of the Indian Penal Code (IPC) such as criminal breach of trust, cheating, and forgery have been invoked against the accused. Along with Thomas, the promoters of HDIL, Rakesh and Sarang Wadhwan were arrested and sent to police custody. Out of 44 accounts, a total of 10 were linked to HDIL. These included the personal bank accounts of the accused.

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(With ANI inputs)