In Yes Bank scam, PMC bank fraud-accused Rakesh & Sarang Wadhawan of HDIL booked by CBI

In a massive development, CBI on Friday, has booked HDIL promoters Sarang Whawan and Rakesh Whawan for alleged Rs 200-crore loan fraud in Yes Bank case. CBI is currently conducting searches at 10 premises including HDIL office, Ashok Jayesh and Associates, Whawans' residence and ors. duo - who are prime accused in PMC Bank scam - are currently in judicial custody. Rakesh Whawan's nephews Kapil and Dheeraj Whawan - promotors of DHFL are main accused in Yes Bank scam. 

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ED attaches Whawan's Rs 100 cr assets

Previously, Enforcement Directorate (ED) attached three hotels owned by Rakesh Whawan in connection to PMC Bank fraud.  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.  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.

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

Yes Bank scam & PMC scam

Yes Bank started facing a crisis as it accumulated many b loans in 2018 by lending to corporate defaulters such as DHFL, Jet Airways, and Cafe Coffee day, among ors. Moreover, when RBI refused to extend term of founder Rana Kapoor as chief executive in 2018, its manment was severely hit with his successor Ravneet Gill managing to raise only one round of funds through a share sale to institutional investors. Currently, CBI and ED have been investigating several investors including Kapil and Dheeraj Whawan, who h received loans from Rana Kapoor. Meanwhile, Yes Bank has been restructured by RBI with SBI as a major stakeholder at 48.21%.

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On or hand, RBI took control of government-run Punjab and Maharashtra Cooperative (PMC) Bank bank on September 21, 2019, capping withdrawals. After takeover, PMC Bank h mitted that one large account-Housing Development and Infrastructure Ltd (HDIL) was sole reason for present crisis. DIL 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. RBI has extended moratorium till December  2020 limiting withdrawals to Rs 1 lakh, as plan of restructuring has borne fruits yet.

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