Rakesh, Sarang Wadhawan Get Judicial Custody In PMC Bank Case
Logos of PMC Bank and HDIL seen at Dreams Mall in Bhandup, Mumbai. (Photographer: Benny Antony/BloombergQuint)

Rakesh, Sarang Wadhawan Get Judicial Custody In PMC Bank Case

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Housing Development Infrastructure Ltd.'s promoters Rakesh Wadhawan and his son Sarang, arrested in connection with the Rs 4,355-crore Punjab and Maharashtra Co-operative Bank case, were remanded to judicial custody on Thursday by a special court in Mumbai.

The Enforcement Directorate produced HDIL chairman and managing director Rakesh and his son before special Prevention of Money Laundering Act court judge P Rajvaidya, after their remand ended.

The court remanded the duo in judicial custody after the central agency did not seek their further custody.

The Wadhawans were arrested last month by Mumbai Police's Economic Offences Wing.

The EOW had registered a case against them and top officials of 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.

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

The ED case of money laundering was based on the FIR registered by the EOW.

Besides the father-son duo, police have arrested three former top officials of the bank in connection with the scam.

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