Published 19:28 IST, January 1st 2021
PMC Bank Scam Probe: ED attaches Pravin Raut's properties worth Rs 72 cr under PMLA
On Friday, the Enforcement Directorate attached the properties of Pravin Raut worth Rs 72 crore in connection with the ongoing PMC Bank scam investigation.
On Friday, the Enforcement Directorate attached the properties of Pravin Raut worth Rs.72 crore in connection with the ongoing PMC Bank scam investigation. Located in Maharashtra, these properties have been seized under the Prevention of Money Laundering Act. As per the ED, Raut siphoned off Rs.95 crore through the illegally availed loans by Housing Development and Infrastructure Limited from PMC Bank in "conspiracy and connivance" with various persons.
Mentioning that he paid Rs.1.6 crore to his wife Madhuri Raut from the "proceeds of crime", the probe agency added that she transferred Rs.55 lakh out of the aforesaid money to Sena MP Sanjay Raut's wife Varsha as an interest free loan. Claiming that this amount was used for the purchase of a flat in Dadar East, Mumbai, it added that Varsha Raut and Madhuri Raut are partners in M/s. Avani Construction. Moreover, Varsha Raut is yet to repay a loan of Rs.12 lakh allegedly received from this entity.
So far, Varsha Raut has not appeared before the ED despite being summoned twice so far. As per sources. the probe agency has allowed her to join the probe on January 5. Two days earlier, Sena parliamentarian Sanjay Raut stated that his family's name was being "mischievously linked' to the PMC Bank scam.
What is the PMC Bank scam?
The police registered a First Information Report (FIR) against the top officials of the PMC Bank and the promoters of the HDIL. According to the prosecution, the bank continued giving loans to the debt-ridden HDIL from 2008 to 2019 despite the previous loans not being repaid. This caused a loss of approximately Rs.4,355 crore.
Several sections of the Indian Penal Code (IPC) such as criminal breach of trust, cheating, and forgery have been invoked against the accused. Besides HDIL promoters Sarang and Rakesh Wadhawan, the former Managing Director Joy Thomas and ex-Chairman Waryam Singh were arrested and sent to police custody. Out of 44 accounts, a total of 10 were linked to HDIL.
These included the personal bank accounts of the accused. The RBI appointed former Union Bank of India executive A K Dixit as the new administrator of PMC Bank. In another letdown for the depositors, India's Central bank has extended the moratorium on the PMC Bank till March 31, 2021. Until now, the bank has received at least 4 Expressions of Interest (EoI) for investment or equity participation in its reconstruction.
Updated 19:46 IST, January 1st 2021