ED seeks custody of HDIL's Wadhawans in PMC bank probe

The Enforcement Directorate on Wednesday sought custody of HDIL promoters Rakesh Wadhawan and his son Sarang in connection with the Rs 4,355 crore Punjab & Maharashtra Cooperative (PMC) Bank scam.

Real estate firm Housing Development Infrastructure Ltd's (HDIL) chairman and managing director Rakesh Wadhawan and his son were first arrested by the Economic Offences Wing of Mumbai Police in connection with the case.

The EOW alleged that the bank management, in cahoots with the Wadhawans, concealed from the banking regulators' scrutiny huge loan defaults by the HDIL group firms.

The bank officials replaced 44 loan accounts of HDIL with 21,049 fictitious accounts to camouflage huge loan defaults by the real estate group, it said.

The Wadhawan duo, along with another accused, the bank's former chairman Waryam Singh, were produced before Metropolitan Magistrate S G Shaikh as their custody ended on Wednesday. The court remanded them in judicial custody till October 23.

Besides these three, the EOW has also arrested the bank's former managing director Joy Thomas, whose police custody will expire on October 17.

Later in the day, the ED approached the special court for Prevention of Money Laundering Act (PMLA) cases, seeking the Wadhawans' custody for probe in the money laundering case the central agency has registered in the PMC bank scam.

The court asked the ED to complete necessary formalities, and adjourned its plea without giving a specific date, a lawyer of the central agency said.

The Wadhawans were arrested by the EOW on October 3.

On Monday, the ED said it had seized assets worth Rs 3,830 crore, including private jets and a yacht, during its probe.

Meanwhile, outside the magistrate's court, several depositors of the bank staged a protest, demanding that their money be returned.

They also met Mumbai Police Commissioner Sanjay Barve. He promised that the EOW will conduct a speedy inquiry into the case, said one of the protesters.

The depositors are in trouble as the Reserve Bank of India has imposed restrictions on withdrawal of funds from the bank.