ED attaches Rs 36.66 cr assets of Veena Developers in bank fraud linking HDIL promoters Rakesh, Sarang Wadhawan

New Delhi [India], April 6 (ANI): The Directorate of Enforcement (ED) has attached assets worth Rs 36.66 crore of Veena Developers in a bank fraud case belonging to the accused, Rakesh Wadhawan and Sarang Wadhawan, under provisions of the Prevention of Money Laundering Act (PMLA), the agency said in a statement on Saturday.

The bank fraud case pertains to Rakesh Wadhawan and Sarang Wadhawan, the promoters of Housing Development Infrastructure Ltd. (HDIL) and others linked to the case of Mack Star Marketing Private Limited.

The attached assets are in the form of commercial properties consisting of two office units measuring approximately 22,366 square feet in the Kaledonia building in Andheri (East) in Mumbai and shops situated in Veena Velocity Phase II, Diwanman in Maharashtra’s Palghar.

ED’s Mumbai Zonal Office attached these properties under the provisions of the Prevention of Money Laundering Act (PMLA).

The ED initiated an investigation based on a First Information Report (FIR) registered by the CBI (ACB), Mumbai, under various sections of the Indian Penal Code, 1860 and the Prevention of Corruption Act 1988 against Rakesh Wadhawan, Sarang Wadhawan and others for siphoning off the loan to the tune of Rs 200 crore sanctioned by Yes Bank to one Mack Star Marketing Pvt Ltd.

Further, based on a complaint filed by Mack Star Marketing Pvt Ltd, NM Joshi Marg Police Station, Mumbai, registered a fresh FIR under various sections of IPC, 1860, wherein it is alleged that Wadhawans had illegally and fraudulently sold several office units in the Kaledonia building owned by Mack Star Marketing Pvt Ltd, causing wrongful loss to Mack Star of more than Rs 300 crore.

The allegation made in this FIR is also being investigated by ED, along with the above detailed FIR of the CBI.

The ED investigation revealed that Wadhawans illegally and fraudulently transferred one commercial property of Mack Star located in the Kaledonia building, Andheri East in Mumbai to Vikram Homes Pvt Ltd, a company which is owned by Late Satya Pal Talwar and Dharam Pal Talwar, without any actual payment to Mack Star.

Thus, Rakesh Wadhawan and Sarang Wadhawan cheated Mack Star Marketing Pvt Ltd by illegally selling the above-mentioned properties without the consent of the majority shareholder (DE Shaw Group which holds 83.36 per cent shares) of Mack Star Marketing Pvt Ltd, causing a loss to Mack Star, the agency added.

ED had earlier attached properties worth Rs 244.36 crore.

The total attachment in this case now stands at Rs 281.02 crore.