Tag: HDIL

Shiv Sena MP Sanjay Raut arrested by ED in Patra Chawl land scam case: What we know so far

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shiv Sena MP Sanjay Raut was arrested on Monday hours after questioning by the Enforcement Directorate (ED) in connection with the re-development of the Patra Chawl in Mumbai. Raut has alleged that he is being targeted by the Centre to weaken the position of team Thackeray, which recently suffered defections.

Raut was taken into custody at 12:05 am on Monday by the ED under the Prevention of Money Laundering Act (PMLA) as he was not cooperating in the probe, News18 reported.

A team of the ED had reached Raut’s residence in Mumbai’s Bhandup area at 7am on Sunday. They conducted a search, questioned Raut, and by evening, summoned him for questioning at the agency’s local office to which he did not cooperate. The team also seized about Rs 11.5 lakh in cash during the search, out of which Rs 10 lakh was kept as CM Eknath Shinde’s money. Before entering the ED office, Raut told reporters that he was being framed in a ‘false’ case and the Centre is trying to weaken the Shiv Sena.

As per the report, the ED is likely to seek 10-day custody of Sanjay Raut in the Patra Chawl land scam case.

Meanwhile, Shiv Sena MP Priyanka Chaturvedi has given a suspension of business notice in Rajya Sabha on the ‘Misuse of ED’ to silence opposition leaders.

ALSO READ: Sanjay Raut detained by ED after raids in Patra Chawl land scam case

Shiv Sena workers have been protesting since Sunday following the raid by ED. Shiv Sena workers will stage protests today as well against the arrest of the party MP Sanjay Raut and his MLA brother Sunil Raut.

What is Patra Chawl land scam case?

In 2007-08, Guru Ashish Constructions (GAC) was awarded a contract for the redevelopment of Patra Chawl by MHADA (Maharashtra Housing and Development Authority). Guru Ashish Constructions is a sister concern or subsidiary of HDIL, which is facing a loan fraud case by the CBI.

Siddharth Nagar, which is popularly known as Patra Chawl, is in the northern Mumbai suburb of Goregaon. The chawl had a total of 672 houses, spread over an area of 47 acres.

The Guru Ashish Constructions was to develop flats for the 672 tenants of Patra Chawl and about 3000 flats had to be handed over to MHADA. A tripartite agreement was signed between GACPL, the tenants’ society, and MHADA and the total land parcel of 47 acres was determined. After handing over the flats to MHADA and Patra Chawl tenants, the remaining land was to be allowed for sale and development by Guru Ashish Constructions.

However, GAC reportedly misled the MHADA and sold FSI (Floor Space Index) to 9 builders for Rs 901.79 crore and without constructing the rehab portion for the 672 displaced tenants and the MHADA portion.

GAC also launched a project called Meadows and took the booking amount of around Rs 138 crore from flat buyers. The ED has alleged that the total proceeds of the scam through these ‘illegal activities’ of GAC stand at Rs 1039.79 crore.

It has been 14 years since the project was given to GAC and the people of Patra Chawl continue to wait to get their homes.

Separately, it was found that from accounts of HDIL around Rs 100 crore was transferred to Pravin Raut, a former director of GAC and close associate of Sanjay Raut. In February 2020, Pravin Raut was arrested by EOW and was later released on bail.

ED has claimed that Pravin Raut diverted Rs 100 crore to various accounts of his close associates, and family members, including the family of Sanjay Raut.

The ED has alleged that in 2010, Maduri Pravin Raut, wife of Pravin Raut transferred Rs 83 lakh to Sanjay Raut’s wife Varsha Raut as an unsecured loan. Varsha Raut then used the money to buy a flat in Dadar. Apart from this, at least eight plots of land were purchased at Kihim beach at Alibaug in Maharashtra in the name of Varsha Raut and Swapna Patkar, wife of Sujit Patkar, a close associate of Sanjay Raut.

In April, the properties of Varsha Raut, including the Dadar flat and the 8 plots and properties of Pravin Raut totalling Rs 11.8 crore were attached by the ED.

ALSO READ:  Shiv Sena’s Sanjay Raut to appear before ED on July 1 in Patra Chawl land scam case

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PMC bank fraud: ED attaches HDIL group’s shares worth Rs 233 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Enforcement Directorate (ED) on Thursday said it has attached partly-paid compulsorily convertible preference shares worth Rs 233 crore of HDIL group companies in the alleged multi-crore-rupee PMC bank fraud and money-laundering case. It said “on the strength” of these shares, HDIL had the rights for allotment of under-construction flats measuring 90,250 square feet FSI (floor space index) in Mumbai’s Ghatkopar of developer Aryaman Developers Private Limited.

“The developer has given an undertaking to ensure not to sell, transfer, alienate or create any third-party rights on completion of the project,” the ED said. The agency has filed a money-laundering case to probe the alleged loan fraud in the Punjab and Maharashtra Co-operative (PMC) Bank in October 2019 against the Housing Development Infrastructure Limited (HDIL), its promoters Rakesh Kumar Wadhawan, his son Sarang Wadhawan, its former chairman Waryam Singh and former managing director Joy Thomas.

The others under the agency’s scanner include the promoters and executives of Somerset Construction Private Limited, Serveall Construction Private Limited, Sapphire Land Development Private Limited, Emerald Realtors Private Limited, Awas Developers and Construction Private Limited, Prithvi Realtors and Hotels Private Limited and Satyam Realtors Private Limited. The father-son duo were arrested by the ED in the case in October 2019 and they are lodged in a Mumbai jail at present.

Also Read: CEO, CFO of scam-hit Karvy arrested in IndusInd Bank default case

“Rakesh Wadhawan and other promoters of HDIL have fraudulently utilised the funds taken from the PMC Bank in various projects by projecting the same as untainted.” “During 2011-12, an amount of Rs 233 crore was transferred from HDIL group companies to the group companies of Mukesh Doshi of Mumbai and these funds were finally utilised by Aryaman Developers Private Limited in the slum rehabilitation project being developed in Ghatkopar East, Mumbai,” the ED said in a statement.

According to the understanding between Rakesh Wadhawan and Doshi, HDIL group companies would be allotted constructed area of FSI measuring 90,250 square feet of the carpet area in the proposed building. “For this project, Aryaman Developers had its own investments, including loans from banks. The funds were utilised for the payment of land premium, rent to slum dwellers, construction of transit camps, fungible premium, construction of rehab and IOD (intimation of disapproval) deposit with the slum rehabilitation authority.”

“The promoters of HDIL intended to take a backdoor exit from the project and approached Aryaman Developers for a settlement at Rs 150 crore for not causing hindrance in the ongoing project for slum rehabilitation,” the ED alleged. It claimed that an “undertaking” was taken from Doshi in the form of an affidavit to ensure that the project after development would not fall in the hands of accused Rakesh Wadhawan.

Describing the role of HDIL in the alleged default with the PMC Bank, the ED said its group companies availed loans from the bank from time to time. “The mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC bank officials with the promoters of HDIL.”

“There was misconduct on the part of PMC officials as they ignored all the prevailing procedures to facilitate promoters of HDIL by extending unusual credit facility,” it alleged. Instead of declaring those as non-performing assets (NPAs) for initiating actions for recovery, PMC bank officials chose to “accommodate” the HDIL group, the agency alleged.

“Due to such a criminal act of the promoters of HDIL group companies, the PMC Bank suffered a huge wrongful loss to the tune of Rs 6,117.93 crore,” it said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PMC bank fraud case: Viva group MD, CA remanded in ED custody

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A Mumbai court on Saturday remanded the managing director of Viva group Mehul Thakur and a chartered account in Enforcement Directorate custody till January 27 in connection with the Rs 4300-crore PMC Bank fraud case.

Thakur and CA Gopal Chaturvedi were arrested under the Prevention of Money Laundering Act (PMLA) on Friday after the ED searched five residential and business premises linked to the Viva Group.

The two were produced before a holiday court which remanded them in ED custody after the agency told court it has to question them on money that came into different accounts of the group firms from HDIL, ED lawyer Hiten Venegaokar said.

The ED has filed a criminal case of money laundering against HDIL as part of its probe into the alleged loan fraud in Punjab and Maharashtra Co-operative (PMC) Bank.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PMC Bank seeks equity investors for reconstruction of bank, invites interest by December 15

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fraud-hit Punjab and Maharashtra Co-operative Bank today invited proposals for equity investments from suitors to aid the bank’s reconstruction.

In a public notice, the bank said any party that takes over the bank could consider converting the beleaguered entity into a small finance bank, subject to RBI’s approval.

“[The] objective of the process of invitation of EoI is to identify a suitable equity investor/group of investors willing to take over management control so as to revive the bank and commence regular day-to-day operations,” the bank said in its notice.

“Subsequent to commencement of the normal day-to-day operations, it will be open for the investor(s) to convert the bank into a Small Finance Bank by making an application to Reserve Bank of India subject to compliance of the RBI guidelines,” it said.

Eligible suitors have been asked to submit Expressions of Interest latest by December 15. All financial institutions, including banks, NBFCs, microfinance institutions and others, are free to apply.

The bank will forward viable proposals to RBI for its consideration for preparing a draft scheme of reconstruction and other consequential action under Section 45 of Banking Regulation Act, 1945, it said.

The bank said that investor(s) should ideally bring in the capital required for enabling the bank to achieve the minimum required capital to risk-weighted assets ratio (CRAR) of 9 percent. It added that the investors may explore the option of restructuring a part of deposit liabilities into capital/capital instruments.

The bank may also approach DICGC for its support for payment up to Rs 5 lakh to depositors, it added.

Mumbai-based PMC Bank’s board was superseded by RBI in September of last year after major financial irregularities and fraud by the financial institutions board members came to light.

However, no resolution has been found so far. “While the Administrator of PMC Bank and the RBI have been exploring various options for resolution of the bank, several factors such as huge losses incurred by the bank resulting in its entire net worth getting wiped out, steep erosion in deposits, etc. continue to pose serious challenges in finding a workable plan for revival of the bank,” the RBI had said in a statement on September 23.

RBI also recently appointed a new administrator for PMC Bank – AK Dixit, a former Union Bank of India executive – after the first administrator, JB Bhoria, stepped down from his position in September citing health reasons.

In a letter to the depositors of PMC Bank dated November 3, 2020, Dixit said that the bank has already initiated actions for recovery of bad debts, including accounts of HDIL Group, accused of siphoning funds from the bank.

“We have intensified our recovery efforts through close follow up, settlements and legal action as appropriate. We have taken aggressive steps to control costs and cut expenses. Branch network is being rationalised, premises are being surrendered and rents are being re-negotiated down,” he said.

Detailing other measures taken, Dixit said that “a hard look is being taken at every expense”.

“We are working on finding a way out to resolve the Bank in the best interests of all stakeholders, particularly the depositors. Various models/ options are being considered, and discussions are continuing with different entities in this regard. In spite of the pandemic-induced hurdles, the matter is engaging our close attention under the guidance of RBI,” the letter read.

PMC Bank had total deposits of Rs 10,727.12 crore, total advances of Rs 4,472.78 crore and gross NPA of Rs 3,518.89 crore as on March 31, 2020. The share capital of the bank is Rs 292.94 crore.

The bank registered a net loss of Rs 6,835 crore during 2019-20 and has a negative net worth of Rs 5,850.61 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani group, Suraksha, Sunteck Realty submit EOI to acquire debt-laden HDIL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Properties, Suraksha Asset Reconstruction and Sunteck Realty are among six players which have shown initial interest to acquire debt-laden HDIL through the insolvency resolution process, according to a regulatory filing. Adani Properties and Suraksha group had participated in the insolvency resolution process of Jaypee Infratech, which eventually was acquired by the state-owned NBCC.

HDIL is under corporate insolvency resolution process (CIRP) pursuant to the provisions of the Insolvency and Bankruptcy Code (IBC), 2016. In a regulatory filing, Housing Development and Infrastructure Ltd (HDIL) shared the provisional list of prospective resolution applicants.

The invitation for expressions of interest (EOI) for resolution applicants was first published in February and subsequently revised several times. “Submission of EOI was closed on July 31, 2020. The Resolution Professional has received 6 (six) EOI from interested parties,” the filing said.

International Asset Reconstruction Company, N S Software and Harsha Vardhan Reddy have also submitted the EOI, but were found ineligible. International Asset Reconstruction Company has not submitted the undertaking under section 29A of Insolvency and Bankruptcy Code (IBC) in the required format on stamp paper duly signed, stamped and notarised. It will become eligible once the required undertaking is furnished on or before August 8.

N S Software and Harsha Vardhan Reddy did not meet the criteria of having minimum net worth (Rs 500 crore) or asset under management (Rs 2,000 crore) or committed funds (Rs 250 crore) at the end of March 2019.

“Any objection to inclusion or exclusion of a prospective resolution applicant in the provisional list may be made with supporting documents within five days from the date of issue of the provisional list i.e. by August 8, 2020. “After considering the objections, if any, received by the Resolution Professional, final list of prospective resolution applicants (PRAs) will be published,” the filing said.

Its affairs, business and assets are being managed by the Resolution Professional Abhay N Manudhane appointed by National Company Law Tribunal, Mumbai Bench, Mumbai, vide order dated August 20, 2019.

At present, promoters of HDIL Rakesh and Sarang Wadhawan are in jail for alleged involvement in the multi-crore rupee Punjab & Maharashtra Cooperative Bank scam case.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI extends curbs on PMC Bank by 3 months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) on Saturday extended the curbs on scam-stricken PMC Bank by three months till June 22.

“The Reserve Bank of India, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank. In order to take this forward, it is considered necessary to extend the aforesaid directions for a further period of three months,” the RBI said, referring to its previous directions on PMC Bank, which imposed limits on the bank from making fresh loans and imposed a cap on withdrawals on depositors.

In its previous directions, the RBI had increased the withdrawal limit on depositors to Rs 50,000, allowing 78 percent on deposit holders to withdraw the entire amount in their accounts.

The RBI had imposed curbs on PMC Bank after it emerged that it had extended loans to realtor HDIL far in excess of regulatory limits and through fictitious accounts.

Authorities have also charged HDIL promoters with siphoning and money laundering, who were also arrested and are being prosecuted.

Authorities suspect HDIL and its related companies took out nearly Rs 4,000 crore from the bank and have attached assets to roughly the same extent.

“The Reserve Bank been closely monitoring the situation and has been holding regular meetings with the Administrator and the Advisory Committee of the bank. The Reserve Bank has also been, directly and through the Administrator, discussing with various authorities on expeditious sale of securities and recoveries of loans. Due to various factors including legal processes, tangible outcomes are taking some time,” the RBI said.

The central bank pointed out that unlike in case of commercial banks, “the reserve bank has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank.”

The central bank’s statement can be seen in light of the RBI’s actions in the Yes Bank case, where a withdrawal limit was imposed and lifted within 15 days as the RBI lined up a slew of top banks to rescue Yes Bank.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Money laundering case: Court sends Yes Bank founder Rana Kapoor to judicial custody till April 2

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Yes Bank founder Rana Kapoor, arrested in a money laundering case, is “easily susceptible” to getting infected by the coronavirus in prison, his lawyer told a court in Mumbai on Friday.

Kapoor, arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) earlier this month, was remanded in judicial custody till April 2 as the investigation agency did not seek his further remand.

The CBI, meanwhile, obtained a production warrant against him in another case. As his earlier remand ended, the ED produced the 62- year-old Kapoor, former MD and CEO of the beleaguered Yes Bank, before the court in Mumbai.

When the judge asked if he had any complaints, Kapoor said he has been suffering from asthma for the last six-seven years, has low immunity, and he was in acute depression. Advocate Abbad Ponda, his lawyer, said a person with low immunity is “easily susceptible” to catching coronavirus.

“The virus is spreading very fast….It is a very precarious situation. If he goes there (to the jail) he might catch something which is very very serious,” the lawyer said, requesting that Kapoor should be kept in a larger cell.

The court asked the jail authorities to take proper care and provide him medicines as per the advice of the medical officer. As the ED did not want his further custody, judge Parashuram Jadhav sent Kapoor in judicial custody till April 2.

According to the ED, loans of Rs 30,000 crore were given by Yes Bank when Kapoor was at its helm, and of these, advances of Rs 20,000 crore became bad loans.

The central probe agency also claimed that over Rs 202 crores of loans given to a joint venture company of the HDIL group were used to repay previous dues of the real estate company which has now become bankrupt.

The Reserve Bank of India earlier this month put the bank under moratorium, restricting withdrawals to Rs 50,000 per account.

The ED has accused that Kapoor, his family members and others got benefits worth Rs 4,300 crore through companies controlled by his family as kickbacks for sanctioning huge loans. He is also accused of receiving bribes for going easy on loans given to a few big corporate groups that had turned into non-performing assets (NPAs).

Meanwhile, the Central Bureau of Investigation, which is also conducting a probe against Kapoor, has obtained a production warrant against Kapoor to produce him before CBI court and seek his custody, its lawyer said.

Last week, the CBI had registered a case against Kapoor and his wife Bindu for allegedly obtaining Rs 307 crore bribe through the purchase of a bungalow in an upscale Delhi area from a realty firm at half the market price.

The agency suspects that the discounted transaction for the 1.2 acre-bungalow on Amrita Shergill Marg was a gratification to Kapoor through the company Bliss Abode Pvt Ltd in return for non-realisation of over Rs 1,900 crore in loans from Yes Bank to Gautam Thapar-promoted Avantha Realty and group companies.

Kapoor”s wife Bindu is one of the two directors of Bliss Abode Pvt Ltd.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PMC Bank scam: SC stays HC order allowing shifting of HDIL promoters from jail to their residence

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Thursday partially stayed the Bombay High Court order allowing shifting of HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, accused in the multi-crore Punjab & Maharashtra Cooperative (PMC) Bank scam case, from Mumbai’s Arthur Road Jail to their residence.

A bench comprising Chief Justice S A Bobe and justices B R Gavai and Surya Kant took note of the submissions of Solicitor General Tushar Mehta that the high court order to the extent of allowing their release from prison needed to be stayed.

The law officer said the other aspect of the high court order such as sale of assets of the accused promoters under the supervision of high court-appointed committee should be allowed to remain operative and the sole objective was with regard to their release from Arthur road jail.

The top court agreed with the submissions.

Earlier during the day, the apex court had agreed to consider the plea of enforcement agencies against the high court order to release them from jail and keeping them in their residence under the constant watch of prison guards.

Mehta mentioned before the bench that the PMC bank scam involved Rs 7000 crore and the high court had on Wednesday passed a very “unusual order” while hearing public interest litigation (PIL).

Mehta told the bench that the father-son are presently lodged under Arthur Road jail in judicial custody and if they are shifted to their residence as per the high court’s order, it would be like bail to them.

The high court had on Wednesday set up a three-member committee for valuating and sale of encumbered assets of Housing Development and Infrastructure Limited (HDIL) to expeditiously recover dues payable by the firm to PMC bank.

The high court had directed the superintendent of Arthur Road Jail to shift both the accused to their residence under the supervision of two jail guards to ensure their cooperation to the committee.

The high court had passed the order while hearing a PIL seeking direction for expeditious disposal of HDIL assets and properties attached by the Economic Offence Wing and the Enforcement Directorate and repaying PMC Bank depositors at the earliest.

The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that the bank had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to almost-bankrupt HDIL.

According to RBI, the PMC bank masked 44 problematic loan accounts, including those of HDIL, by tampering with its core banking system, and the accounts were accessible only to limited staff members.

Mumbai Police’s Economic Offences Wing and the ED registered offences against senior bank officials and HDIL promoters.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NCLAT issues notice to Bank of India for encashing amount deposited by Wadhawan; lifts stay against formation of HDIL CoC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued a notice to state-run Bank of India to state as to why action should not be taken against the bank for enchasing the amount deposited by Housing Development and Infrastructure Limited (HDIL) owner and executive chairman Rakesh Wadhawan with the court’s approval.

“Let notice be issued on ‘Bank of India’ to state as to why appropriate action should not be initiated against the officers for encashing the amount deposited by Rakesh Wadhawan, shareholder, without prior approval of this appellate tribunal and during the Corporate Insolvency Resolution Process,” read the order by a three-judge bench headed by Justice SJ Mukhopadhaya.

The tribunal has allowed Bank of India a week’s time to file a reply and has posted the case for orders on January 16.

Further, the NCLAT also vacated its interim order dated September 26, 2019, staying the constitution of a ‘Committee of Creditors’, which paves the way for the corporate insolvency resolution process to now proceed.

Bank of India had filed an insolvency plea against the developer with the Mumbai bench of the NCLT after HDIL failed to repay dues worth Rs 522 crore, which was admitted by the court in August last year. Corporation Bank, Syndicate Bank, Indian Bank and Dena Bank had also filed insolvency pleas against the developer.

However, HDIL had filed an appeal against the NCLT order admitting the insolvency plea against the company at NCLAT, following which the NCLAT had imposed an interim stay against the formation of the CoC in September.

The NCLAT has further ruled that in the meantime, the Resolution Professional would ensure that the company remains as an on-going concern and take the assistance of the (suspended) Board of Directors and the employees.

The bank accounts of the ‘Corporate Debtor’ will also be allowed to be operated for the day-to-day functioning of the company such as for payment of current bills of the suppliers, salaries and wages of the paid Director, the Employees’/workmen, electricity bills etc.

HDIL had a debt of almost Rs 2,000 crore to a consortium of banks as of March 31, 2019.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mumbai Police files 32,000-page charge sheet against 5 accused in PMC Bank scam

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai police’s Economic Offences Wing on Friday submitted a 32,000-page charge sheet against five persons in the multi-crore Punjab and Maharashtra
Cooperative (PMC) Bank scam in a metropolitan magistrate court in Mumbai.

The charge sheet has named former managing director of the bank Joy Thomas, former chairman Waryam Singh, former director of the bank Surjit Singh Arora, along with Housing Development and Infrastructure Limited (HDIL) promoters Rakesh Wadhawan and Sarang Wadhawan.

The accused have been charged under various sections of Indian Penal Code including cheating, fraud, destruction of evidence and falsification of documents. All the five accused were arrested soon after the scam at the bank came to light in September this year, and are presently in judicial custody.

Apart from these five, the police has also arrested seven other bank officials, and the supplementary charge sheet will be filed against them later.

The 32,000-page charge sheet includes the forensic audit report of PMC bank and documents of properties purchased by the accused bank officials with kickbacks received by them for giving undue favour to HDIL and the Wadhawans.

The charge sheet has statements of 340 witnesses, including account holders in the bank. The police had recorded the statements of four crucial witnesses before a magistrate under section 164 of the Criminal Procedure Code.

The fraud at PMC Bank came to light in September this year after the Reserve Bank of India discovered that the bank had allegedly created fictitious accounts to hide over Rs 6,700 crore in loans extended to the almost-bankrupt HDIL.

According to the RBI, PMC bank masked 44 problematic loan accounts, including HDIL loan accounts, by tampering with its core banking system, and the accounts were accessible only to limited staff members. The city police’s EOW and Enforcement Directorate has registered offences in the case.

On September 23, 2019, the RBI had imposed regulatory restrictions on the bank. The withdrawal limit for account holders was initially kept at Rs 1,000 per day, which was increased gradually to Rs 50,000.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow