Monday, October 2, 2023

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ED Attaches Properties Worth Rs 31.50 Cr Of Wadhawan Brothers

New Delhi [India]: Directorate of Enforcement has provisionally attached two immovable properties of Guru Ashish Construction Pvt Ltd worth Rs 31.50 crore under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) in a case relating to irregularities in the redevelopment of Patra Chawl Project at Goregaon.

The attached assets are in form of lands held by Rakesh Kumar Wadhawan and Sarang Kumar Wadhawan directors of Guru Ashish Construction Pvt Ltd at Goa. According to ED, the total proceeds of crime generated by Directors of Guru Ashish Constructions Pvt Ltd through illegal activities was approx. Rs 1039.79 crore.

ED has initiated an investigation under provisions of PMLA, 2002 on the basis of FIR registered by EOW, Mumbai against Guru Ashish Construction Pvt Ltd, Rakesh Kumar Wadhwan, Sarang Kumar Wadhwan and others on basis of a complaint filed by Executive Engineer, of the Maharashtra Housing and Area Development Authority (MHADA) under various sections of the Indian Penal Code.

Patra Chawl, in the Siddarth Nagar area of Goregaon, a western suburb of Mumbai, went for redevelopment in 2008. It had over 670 tenants, and the housing units were spread across 47 acres.

Patra Chawl was originally a barrack constructed by the British during the Second World War and was used as a military camp.

In 2008, MHADA took up the redevelopment project and appointed Guru Ashish Construction Private Limited (GACPL), a sister concern of the real estate company Housing Development and Infrastructure Ltd (HDIL), to rehabilitate over 670 tenants and redevelop the locality.

ED further said that an investigation under PMLA revealed that Guru Ashish Construction Pvt Ltd was entrusted with the redevelopment of the Patra Chawl Project for the rehabilitation of 672 tenants.

During the relevant time, Rakesh Kumar Wadhawan, Sarang Wadhwan and others were the Directors of Guru Ashish Construction Pvt Ltd.

A tripartite agreement was signed between society, MHADA and Guru Ashish Construction Pvt Ltd.

According to the agreement, the developer was to provide the flats to 672 tenants and develop flats for MHADA and thereafter remaining area to be sold by the developer. The directors of Guru Ashish Constructions misled MHADA and sold the FSI to 9 developers and collected net amount of approx. Rs 901.79 crore without constructing the rehab portion for 672 displaced tenants and the MHADA portion.

Further Guru Ashish Construction Pvt Ltd also launched one project, ‘ Meadows’, and collected the booking of around Rs 138 crore from flat buyers.

During the further course of the investigation, it was revealed that Rakesh Kumar Wadhawan and Sarang Wadhawan 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 the personal bank accounts of Rakesh Kumar Wadhawan and Sarang Wadhwan after multiple layering.

During the period 2011-2016, proof of concept of Rs 38.5 Crore from the account of Rakesh Wadhawan was utilized for pre-payments of the instalments against an availed loan of Rs 28.5 crore from India Bulls Housing Finance Ltd.

The loan was availed at a floating interest of 18.5 per cent for acquiring 2 plots of the area of 1250 square meters and 15300 square meters in North Goa worth Rs 31.50 Crore during 2011.

A payment of Rs 2 crore was also made to the seller of the plots from the personal account of Sarang Wadhwan.

Further investigation is under progress.

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