ED seizes King Koti’s One Continent hotel for cheating PMC bank of Rs 6,000 Cr

Hyderabad: The Enforcement Directorate (ED) has seized the Hyderabad-based hotel One Continent on King Koti Road in Sultan Bazar, as part of the procedure in a bank fraud case.

The ED initiated the investigation based on an FIR filed by Punjab & Maharashtra Co-operative Bank (PMC) against Joy Thomas and Waryam Singh (the directors of PMC Bank), and Rakesh Kumar Wadhawan, Sarang Wadhawan and other persons under various sections of IPC, 1860.

The Housing Development & Infrastructure Pvt Ltd (HDIL), its promoters and other co-accused/ accomplices committed fraud by causing a loss of Rs 6,117.93 crores (principal Rs 2,540.92 crores and interest Rs 3,577.01 crores) against PMC bank.

Case details

During an investigation under PMLA, based on specific inputs and scrutiny of bank accounts of HDIL Group, it was revealed that from 2006 to 2014, the promoters of HDIL had siphoned off proceeds of crime amounting to Rs 43.84 crores to entities in Hyderabad via My Palace Mutually Aided Cooperative Housing Society and Anish Construct.

The transaction was carried out by Rakesh Wadhwan who projected it as a business by keeping PMC Bank in the dark. Based on the outcome of the investigation, assets worth Rs 43.84 crores belonging to Shri Shripad Deshpande’s Group of Companies have been provisionally attached under PMLA.

Earlier, on October 17, 2019, the main accused persons, Rakesh Kumar Wadhawn and his son Sarang Wadhawan were arrested for their involvement in money laundering and they are currently under judicial custody. In this prosecution, a complaint and two supplementary complaints have already been filed against them and 36 other persons/entities.