Money & Banking

ED seizes HDIL shares worth ₹233 crore

Our Bureau. Mumbai | Updated on September 03, 2021

HDIL Group’s promoters were considered to be lead conspirators of PMC Bank scam

The Enforcement Directorate (ED) seized partly paid compulsorily convertible preference shares of HDIL group companies worth ₹233 crore in relation to the PMC Bank scam.

The PMC Bank scam came to light in September 2019. At least a dozen entities have been charge-sheeted so far for causing wrongful loss to the tune of ₹6,117.93 crore to PMC Bank, and a corresponding gain to themselves. HDIL Group’s promoters were considered to be the lead conspirators of the scam along with the bank’s then MD, Joy Thomas.

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Investigation under Prevention of Money Laundering Act 2002 (PMLA) revealed that in spite of default in payment, HDIL group companies availed loans from PMC from time to time. Now, the ED has attached partly paid Compulsorily Convertible Preference shares of HDIL group companies totalling to ₹233 crore under the provisions of Prevention of Money Laundering Act 2002 in PMC bank scam.

“On the strength of these shares, HDIL have right for allotment of under construction flats admeasuring 90,250 Square feet FSI in Ghatkopar, Mumbai of the developer M/s Aryaman Developers P Ltd. The developer has given an undertaking to ensure not to sell/transfer/alienate or create any third party rights thereon on completion of the project,” it said in a statement on Thursday.

The mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC Bank officials with the promoters of HDIL. There was misconduct on the part of PMC officials as they ignored all prevailing procedures to facilitate promoters of HDIL by extending unusual credit facility. Instead of declaring them as NPA for initiating actions for recovery, the PMC bank officials choose to accommodate the HDIL group.

Published on September 02, 2021

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