ED attaches properties of HDIL’s Wadhawans in Patra chawl case

The Enforcement Directorate (ED) on Monday attached two properties belonging to Housing Development and Infrastructure Limited (HDIL) promoters Rakesh and Sarang Wadhawan in connection with the Patra chawl redevelopment of 2018.

The Enforcement Directorate (ED) on Monday attached two properties belonging to Housing Development and Infrastructure Limited (HDIL) promoters Rakesh and Sarang Wadhawan in connection with the Patra chawl redevelopment of 2018.

The central agency provisionally attached two immovable properties worth ₹31.50 crore belonging to the Wadhawans, the directors of Guru Ashish Construction Private Limited. A tripartite agreement was signed between the society, the Maharashtra Housing and Area Development (MHADA) and Guru Ashish Construction Pvt. Ltd.

According to the agreement, the developer was to provide flats to 672 tenants and develop flats for the MHADA and thereafter the remaining area to be sold by the developer.

“The directors of M/s Guru Ashish Constructions misled the MHADA and sold the floor space index to nine developers and collected a net amount of approximately ₹901.79 crore without constructing the rehab portion for 672 displaced tenants and the MHADA portion. Further, the company also launched one project namely ‘Meadows’ and collected the booking form of around ₹138 crore from flat buyers. The total proceeds of crime (POC) generated by Directors of Guru Ashish Constructions Pvt. Ltd through the illegal activities was approx. ₹1,039.79 crore,” the ED alleges.

The ED in a press release stated: “It was revealed that Wadhawans, after receipt of POC in bank accounts of HDIL and its group companies, further diverted these through bank accounts of HDIL and/or its group companies viz GACPL, Sapphire land Development Pvt Ltd, Satyam Realtors, etc. which finally reached in the personal bank accounts of Wadhwans after multiple layering. During the period 2011-2016, the POC of ₹38.5 crore from the account of Rakesh Wadhawan was utilised for pre-payments of the instalments against availed loan of ₹28.5 crore from IndiaBulls Housing Finance Ltd. The loan was availed at floating interest of 18.5% for acquiring two plots of area of 1,250 square metres and 15,300 square metres in North Goa worth ₹31.50 crore during 2011. A payment of ₹2 crore were also made to the seller of the plots from the personal account of Sarang Wadhwan.”