A Mumbai court on Tuesday extended the ED custody of HDIL promoters Rakesh Wadhawan and his son Sarang Wadhawan, arrested in connection with Rs 4,355 crore Punjab and Maharashtra Cooperative (PMC) Bank scam, till 24 October.
The Enforcement Directorate (ED) produced Housing Development Infrastructure Ltd's (HDIL) chairman and managing director Rakesh Wadhawan and his son before special Prevention of Money Laundering Act court judge P Rajvaidya, after their remand ended on Tuesday.
Punjab and Maharashtra Co-operative (PMC) Bank case: Special Court in Mumbai extends Enforcement Directorate custody of accused Rakesh Wadhawan and Sarang Wadhawan till October 24. pic.twitter.com/a8SQqQBpsj
— ANI (@ANI) October 22, 2019
It sought further custody of the father-son duo to probe them further in connection with the scam.
The probing agency's counsel Kavita Patil said the accused played a crucial role in laundering huge amount of money and were concealing material from investigation.
The money trail of proceeds received from the bank and properties derived from the same were yet to be ascertained, the ED said.
The court extended the ED custody of the duo till Thursday.
The Wadhawans were arrested last month by Mumbai Police's Economic Offences Wing (EOW).
Meanwhile, in another development, a Mumbai court on Tuesday also extended till 24 October the police remand of PMC Bank's former director Surjit Singh Arora.
Arora was last week arrested by Mumbai Police's Economic Offences Wing (EOW) and he was produced before metropolitan magistrate S G Shaikh, after his police remand ended on Tuesday.
The court extended his police custody till Thursday.
Arora is the fifth accused to be arrested in the case.
The EOW last week said Arora was the director and key member of the loan committee of the bank until its affairs were taken over by the RBI.
Arora, in collusion with other accused, performed his alleged role in the crime, the probing agency said.
"Arora was elected on the directors' body to ensure proper functioning of the bank. However, he abused his official position to facilitate the fraud," it said.
The EOW earlier this month registered a case against them and top officials of the PMC Bank for allegedly causing losses to the tune of Rs 4,355.43 crore to the bank.
It alleged that the bank management, in cahoots with the Wadhawans, concealed from the banking regulators' scrutiny huge loan defaults by the HDIL group firms.
The bank officials replaced 44 loan accounts of the HDIL with 21,049 fictitious accounts to camouflage huge loan defaults by the real estate group, it said.
The ED case of money laundering was based on the FIR registered by the EOW.
(With PTI inputs)
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Updated Date: Oct 22, 2019 17:10:36 IST