HDIL owner Rakesh Wadhawan’s name surfaces in another alleged cheating case

Another twist in the PMC bank case? Rakesh Wadhawan the owner of now bankrupt HDIL was allegedly a part of another cheating case in 2013.

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There has been an interesting new development in relation to the ongoing PMC bank crisis case. Housing Development Infrastructure Limited (HDIL) owner Rakesh Wadhawan, is also linked to an alleged cheating case involving real estate firm Rudra Buildwell.

In Rudra Buildwell case, the complaint was filed by 50 flat buyers who claimed that they had booked flats in 2011 in a real estate project in Ghaziabad's Indirapuram but the project never took off.

Wadhawan’s named in the charge sheet in column 12 i.e., accused persons not charge-sheeted.

In the supplementary charge-sheet, it has been alleged that there has been no significant infrastructural or other development whatsoever on the plot of land and that the developer did not even get any approval from the competent authorities. The complaints also alleged that their complaints and concerns were are no longer being entertained.

What’s more is that “the developers executed Builder Buyer Agreement with the victims in June-July, 2014, which is after after the expiry of sanctioned building plan on June 6, 2013. Interestingly, despite there being no development in the area, the developers had been raising demand letters and collecting money from the people that have booked a flat unauthorisedly even after June 23, 2013."

The crisis in PMC bank was first exposed on September 23, when RBI directed it to shut down its operations. In addition, a withdrawal limit of ₹1000 per customer which has been imposed. This has now been increased to Rs 25,000 per account holder for a period of six months.

It is being said that the major cause of this crisis is the exposure that the bank had to bankrupt Housing Development and Infrastructure Limited (HDIL). The total exposure to the sick real estate company is being pegged over Rs 6,500 crore, which translates to 73 per cent of its total assets worth.

Rakesh and Sarang Wadhawan, were arrested by the Mumbai Police's economic offense wing (EoW) on October 3 in connection with a financial fraud in Punjab and Maharashtra Cooperative (PMC) bank, have been remanded to police custody till 9 October.

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