HDIL promoters arrested in PMC loan default case

HDIL promoters arrested in PMC loan default case

Agency News

Mumbai, Oct 4 : The Special Investigation Team (SIT) of the city police on Thursday arrested former bankers and promoters of the crisis-hit real estate firm Housing Development and Infrastructure Ltd (HDIL), Rakesh Wadhwan and his son Sarang, for allegedly defaulting loans of the Punjab and Maharashtra Cooperative (PMC) Bank worth up to Rs 4,300 crore.

Based on a complaint lodged by the Reserve Bank of India (RBI)-appointed administrator, the city police’s Economic Offences Wing filed a first information report (FIR) in the case of forgery, cheating and criminal conspiracy against the officials.
The complaint was registered by RBI administrator Jasbir Singh Mattha, in which he alleged that in the period between 2008 and August 2019, the loans given to a particular company were not paid and had turned into NPA (non-performing assets).

However, the Bank did not disclose this information to the RBI as per banking norms and continued to give loans despite the company being taken for insolvency. Currently, HDIL has a land reserve of 193 million sq ft, out of which, 86.22 lakh sq ft is under construction for housing projects in Mumbai Metropolitan Region. (UNI)