ED’s probe unveils massive Loan Fraud: PMC Bank Scandal deepens

In a startling development, the Enforcement Directorate (ED) has taken significant steps in the ongoing investigation of the Punjab & Maharashtra Co-operative Bank (PMC) loan fraud case. The central investigative agency has provisionally attached 1807 acres of land parcels with a registered value of Rs 52.90 Crore.

These parcels, located in Village Vijaydurg, Taluka Devgad, District Sindhudurg, were acquired between 2010 and 2013 using proceeds of crime amounting to a staggering Rs 82.30 Crore.

The ED’s Mumbai Zonal Office released a statement, disclosing that the attached land, ostensibly earmarked for port development, remained undeveloped. Shockingly, Sarang and Rakesh Wadhawan, through their subsidiary companies, diverted the proceeds of crime into the accounts of 39 farmers, all while concealing these transactions from PMC Bank.

This revelation comes amid an ongoing investigation initiated by the ED based on a First Information Report (FIR) filed by the Economic Offences Wing (EOW) of the Mumbai Police. The FIR implicates key figures including Joy Thomas and Waryam Singh, directors of PMC Bank, as well as Rakesh Kumar Wadhawan, Sarang Wadhawan, and others associated with Housing Development & Infrastructure Pvt Ltd (HDIL). The fraud, estimated at Rs. 6117.93 Crore, has caused substantial losses to PMC Bank.

Further scrutiny by the ED exposed the intricate web of deceit woven by the Wadhawans. Between 2010 and 2013, they orchestrated the siphoning off of Rs. 82.30 Crore into the accounts of farmers, utilizing their companies, M/s Privilege Power and Infrastructure Limited and M/s Privilege Hi-Tech Infrastructure Limited.

The funds were used to acquire lands in Vijaydurg, District Sindhudurg, with Sarang Wadhawan and his associate Mukesh Khadpe coercing farmers to transfer ownership to HDIL group entities in exchange for commissions and other inducements.

The ED’s relentless pursuit of justice has already led to the arrest of Rakesh Kumar Wadhawan and Sarang Wadhawan on charges of money laundering. Prosecution complaints have been filed against them and 36 others, with assets totaling Rs. 719.11 Crore provisionally attached under the Prevention of Money Laundering Act (PMLA), 2002.

As the investigation continues, more revelations are anticipated, shedding light on the depth of corruption and malfeasance within PMC Bank and its associated entities.

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