MUMBAI: The police have told a local court that Housing Development and Infrastructure LtdNSE -4.92 % (HDIL) promoters had diverted Rs 90 crore taken as loans from Punjab & Maharashtra Cooperative Bank (PMC Bank) to settle their outstanding dues with Bank of India.
The police made the allegation of evergreening of loans against Sarang and Rakesh Wadhawan while seeking further custody of the two HDIL promoters and former PMC Bank chairman Waryam Singh, who were arrested last week over an alleged fraud at the Mumbai-based lender.
The court on Wednesday remanded them in police custody till October 14.
The city police’s investigation has also revealed that Rakesh Wadhawan and his son, Sarang, had allegedly forged and falsified KYC details to avail of “loans” which were actually drawn through overdraft facilities, it said in the remand application. According to the police’s first information report, Rs 4,355.46 crore had been allegedly diverted as loans by PMC Bank into the personal and “ghost accounts” of the Wadhawans.
Meanwhile, about 150 depositors protested outside the Metropolitan Magistrate Court where the accused were bought by the police seeking their remand. The crowd tried to stop the vehicle carrying Amit Desai, counsel for the Wadhawans, but the police removed the protesters.
“My husband suffers from leprosy. We have managed to save a few lakhs in PMC as fixed deposits. Who is going to pay us now?” asked Madhavi Kotain, a protestor outside the court who said she has an account with the Andheri branch of the bank. “Both the government and the RBI aren’t acting enough to safeguard our interests. The only option we have is to come here and protest,” she told ET.
The police told the court that the accused needed to be interrogated further. ET has seen a copy of the remand application, which alleged that the realty developer had also misled the Registrar of Companies by making “accommodative entries in the books of accounts of HDIL in respect of unpaid dues of loan accounts with PMC Bank since 2008”. This, it said, “is brazen falsification of accounts which needed to be substantiated with thorough examination of the books of accounts of HDIL”.