HDIL directors sent to six-day EOW custody
Agency tells court it needs to probe if there is a link between HDIL and 21,000 fake accounts
The Killa Court on Friday remanded Rakesh Kumar Wadhawan and his son Sarang Wadhawan, the HDIL directors, in Economic Offences Wing's (EOW) custody until October 9 in connection with the PMC Bank case.
Requesting a maximum custody of the Wadhawans, the EOW told the court that the funds HDIL received from Punjab Maharashtra Co-operative (PMC) Bank were not utilised for the purpose mentioned at the time of borrowing the money.
Initial scrutiny of financial statements indicates diversion and misappropriation of funds in large amounts and we need to interrogate them in this regard, EOW told the court in the remand letter.
The investigating officer also informed the court that during the initial probe they have unearthed 21,000 fictitious accounts at the PMC Bank. The agency is now investigating to establish a link between the accounts and HDIL.
'Wadhawans won't flee'
Defending the Wadhawans, senior lawyer Amit Desai argued that just because Nirav Modi and Vijay Mallya fled the country, it didn't mean the HDIL directors would too. "My clients were very cooperative and they even surrendered their passports before the EOW a day before the arrest," he said. The EOW arrested the Wadhawans on Thursday.
"By claiming that my clients did not give details of their loans, they are implying that they were uncooperative. In fact, the Wadhawans contacted the RBI-appointed administrator at the PMC Bank as soon as the fraud became known," Desai told the court.
He added, "My clients offered to meet the RBI administrator to explain our assets, liabilities and other details. They also offered to liquidate assets to pay back the loan, which could have helped the depositors. But the arrests have created fear in the market that these properties of my clients are tainted."
Value of Wadhawans's 40 properties worth Rs 1,000 crore has depreciated and they have suffered a loss of Rs 100 crore with the loss of a business deal because of the case, Desai said.
Meanwhile, the EOW has summoned CFO and the finance team of the HDIL for questioning.
Suspended PMC Bank MD Joy Thomas held
The EOW on Friday evening arrested Joy Thomas, the suspended managing director of the PMC Bank, who was untraceable since an FIR was registered against him and the Wadhawans. "The SIT investigating the case was looking for him but he was untraceable. He was brought to the police headquarters on Friday and arrested when he did not give satisfactory responses to our queries," said police spokesperson DCP Pranay Ashok. Thomas, in his confessional statement, had admitted that he was responsible for sanctioning nearly 73 per cent of the bank's total loans.
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