The Enforcement Directorate (ED) has seized assets valued at Rs 36.66 crore belonging to Veena Developers in connection with a bank fraud case linked to Rakesh Wadhawan and Sarang Wadhawan. This action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), as stated by the agency in a press release on Saturday.
The bank fraud case involves Rakesh Wadhawan and Sarang Wadhawan, who are the promoters of Housing Development Infrastructure Ltd. (HDIL), along with other individuals associated with the Mack Star Marketing Private Limited case.
The assets that have been attached include commercial properties, comprising two office units spanning approximately 22,366 square feet in the Kaledonia building located in Andheri (East), Mumbai, as well as shops situated in Veena Velocity Phase II, Diwanman, in Palghar, Maharashtra. These properties were seized by the Enforcement Directorate’s Mumbai Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA).
The Enforcement Directorate (ED) commenced an inquiry following a First Information Report (FIR) lodged by the Central Bureau of Investigation (CBI) Anti-Corruption Bureau (ACB), Mumbai. The FIR was filed under multiple sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988, against Rakesh Wadhawan, Sarang Wadhawan, and others. The investigation focuses on allegations of diverting a loan amounting to Rs 200 crore sanctioned by Yes Bank to Mack Star Marketing Pvt Ltd.
Additionally, following a complaint lodged by Mack Star Marketing Pvt Ltd, the NM Joshi Marg Police Station in Mumbai filed a new First Information Report (FIR). This FIR, registered under various sections of the Indian Penal Code, 1860, alleges that the Wadhawans unlawfully and deceitfully sold multiple office units in the Kaledonia building, which belonged to Mack Star Marketing Pvt Ltd. This action purportedly resulted in a wrongful loss of over Rs 300 crore to Mack Star Marketing Pvt Ltd.
The Enforcement Directorate (ED) is also investigating the allegations mentioned in this FIR, in addition to the detailed FIR filed by the CBI. During the ED investigation, it was found that the Wadhawans unlawfully transferred a commercial property of Mack Star, situated in the Kaledonia building, Andheri East, Mumbai, to Vikram Homes Pvt Ltd. This transfer occurred without any actual payment to Mack Star and the recipient company is owned by Late Satya Pal Talwar and Dharam Pal Talwar.
Rakesh Wadhawan and Sarang Wadhawan are accused of defrauding Mack Star Marketing Pvt Ltd by selling the aforementioned properties without the consent of the majority shareholder, the DE Shaw Group, which holds 83.36 percent of Mack Star’s shares. This action resulted in a financial loss to Mack Star, as stated by the agency.
Previously, the Enforcement Directorate (ED) had attached properties valued at Rs 244.36 crore. With the recent attachment, the total assets seized in this case amount to Rs 281.02 crore.