PMC Bank scam: ED attaches HDIL promoter Rakesh Wadhawan's 3 hotels worth Rs 100 cr

Cracking down on PMC Bank fraud accused Rakesh and Sarang Whawan, Enforcement Directorate (ED) on Friday, attached three hotels owned by Rakesh Whawan in connection to case. As per press release, three Delhi-based hotels - Hotel Conclave Boutique, Hotel Conclave Executive, Hotel Conclave Comfort (FAB Hotels) owned by Whawan and ors amounting to Rs 100 crores, have been attached. Currently, Whawan along with Sarang is in jail after being denied bail in case, by a Mumbai court inspite of being infected by Coronavirus (COVID-19).

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ED attaches Whawan's Rs 100 cr assets 

ED investigation has revealed that proceed worth Rs 247 crores were obtained fraudulently by Hotel owners  - Libra Realtors & Dewan Realtors by PMC Bank in guise of loans. se loans are part of Rs 6117 crores owed by HDIL to PMC Bank. Apart from PMC Bank fraud, Sarang Whawan has also been arrested by Mumbai police's Ecomic Offences Wing in connection with a Rs 1,034-crore scam in redevelopment of Goregaon Patra Chawl redevelopment project.

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PMC Bank Scam

On September 21, RBI took control of government-run Punjab and Maharashtra Cooperative (PMC) Bank bank for six-months capping withdrawals at ₹1,000 per account and disallowing bank to make any fresh loans for six months. Amid several depositors protesting in front of government and RBI, withdrawal limit has been increased to Rs. 40,000. Moreover, Supreme Court has also stayed Bombay High Court order directing sale of bankrupt HDIL to ensure repayment of dues and refused to RBI-sanctioned limits on withdrawal. RBI has extended moratorium till December  2020 limiting withdrawals to Rs 1 lakh.

After takeover, PMC Bank h mitted that one large account-Housing Development and Infrastructure Ltd (HDIL) was sole reason for present crisis. Following this, HDIL directors Sarang Whawan and Rakesh Kumar Whawan were arrested by Mumbai Police's Ecomic Offences Wing and ED in connection with a fraud of over Rs 4,355 crores. PMC Bank officials gave loans to HDIL between year 2008 and August 2019 despite t paying previous loans. Seven depositors' deaths have occurred due to insufficient cash since n. 

RBI extends moratorium on PMC Bank till December 22; withdrawal limit capped at Rs 1 lakh

PMC Bank, which h Rs. 11,500 crore deposited in its 137 branches, has alrey depleted to Rs 200 crores as Tax officials have asked to pay TDS. Meanwhile, Lok Sabha has passed an amendment to Banking Regulation Act to bring cooperative banks under supervision of RBI. Banking Regulation (Amendment) Bill, 2020 aims to strengn cooperative banks by increasing professionalism, enabling access to capital, improving governance - after PMC Bank fraud. Rakesh Whawan's nephews Kapil and Dheeraj Whawan - promotors of DHFL, are embroiled in Yes Bank scam. 

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