PMC Bank Scam: Former HDIL promoter Rakesh Wadhawan seeks to restructure company

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Rakesh Wadhawan, former promoter and director of Housing Development and Infrastructure Limited (HDIL), has sought permission from the National Company Law Tribunal (NCLT) to come up with a viable revival plan for HDIL. The NCLT will hear the complaint on Tuesday.

Through his filing, Wadhawan aims to restructure HDIL or negotiate a one-time settlement, underscoring his commitment to maximizing the company’s value.

He alleged that resolution professional Abhay Manudhane had grossly underestimated the value of HDIL, estimating its value at over Rs 6,500 crore, while the approved resolution plan proposed a value of less than Rs 600 crore.

Wadhawan also alleged that HDIL’s assets have been systematically looted by corporate and joint venture partners. He further accused resolution professionals and other authorized representatives of conspiracy and foul play.

Rakesh Wadhawan and his son Sarang were arrested in connection with a multi-crore money laundering case related to PMC Bank, which was registered by the Enforcement Directorate (ED) and Economic Offenses Branch of Mumbai Police in 2019.

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HDIL, its promoters and other co-accused and conspirators committed fraud resulting in loss of Rs 6,117.93 crore to PMC Bank. Nearly 1.6 million account holders suffered losses as the Reserve Bank of India issued withdrawal restrictions for months on end.

The scam-hit PMC Bank, which has customers in six states, was used as a personal bank by the accused promoters of HDIL, Rakesh and Sarang Wadhawan, which was done with the help of senior officials of the bank.

Wadhawan will be released on bail in April 2024.

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