MUMBAI: HDIL promoters Rakesh Wadhawan and his son Sarang, arrested in connection with the Rs 4, 355-crore PMC Bank scam, were remanded to judicial custody on Thursday by a special court.
The enforcement directorate (ED) produced housing development Infrastructure Ltd’s (HDIL) chairman and managing director Rakesh and his son interference of money laundering Act (PMLA) court judge P Rajvaidya after their remand ended.
The court remanded the duo in judicial custody when the central agency didn’t seek their further custody.
Punjab and Maharashtra Cooperative
Wadhawans was arrested last month by Mumbai Police’s Economic Offences Wing (EOW).
The EOW had registered a case against them and top officials of the Punjab and Maharashtra Cooperative (PMC) Bank earlier this month for allegedly causing losses to the tune of Rs 4, 355.43 crore to the bank.
It alleged that the bank management, in cahoots with the Wadhawans, concealed from the banking regulators’ scrutiny huge loan defaults by the HDIL group firms.
Father and Son were arrested for PMC Bank Scam
The bank officials replaced 44 loan accounts of the HDIL with 21, 049 fictitious accounts to huge loan defaults by the real estate group, it said.
That the case of money laundering was based on the FIR registered by the EOW.
Besides the father-son, police have arrested 3 former top officials of the bank in connection with the scam.