ED attaches properties worth Rs 35.48 cr of Raj Shroff, his wife under PMLA

New Delhi [India], March 15 (ANI): Enforcement Directorate (ED) has provisionally attached immovable assets worth Rs 35.48 crore belonging to Raj Shroff and his wife, owners of M/s Jindal Combines Private Limited and M/s Orlando Trading Private Limited under Prevention of Money Laundering Act, 2002 (PMLA) in a bank fraud case of Rakesh Wadhawan and Sarang Wadhawan, promoters of HDIL and others (Mack Star Case).
The attached assets are in the form of two commercial properties admeasuring approx. 10550 square feet area each in Kaledonia building, Andheri (East), Mumbai.
"ED initiated the investigation on the basis of FIR registered by CBI (ACB), Mumbai against Rakesh Wadhawan and Sarang Wadhawan, promoters of HDIL and others for siphoning off the loan to the tune of Rs 200 crore sanctioned by Yes Bank to Mack Star Marketing Private Limited, by showing it for fictitious purpose," read the release by ED.
Earlier, ED has already initiated an investigation under PMLA against Housing Development Infrastructures Ltd. (HDIL), Rakesh Wadhawan, Sarang Wadhawan, and Joy Thomas, CMD of PMC bank Limited and others on the basis of FIR registered by the Economic Offences wing of Mumbai Police for causing wrongful loss and corresponding gain to themselves prima facie to the tune of Rs 4,355 crore to PMC Bank and ED has already attached properties worth Rs 366.3 crore along with the seizure of Rs 63.78 crore value.
Investigation under PMLA revealed that Wadhawans illegally and fraudulently transferred one commercial property of Mack Star located in Kaledonia building, Andheri East, Mumbai to M/s Jindal Combines Private Limited at the price of Rs 9.39 crore (having ready reckoner value Rs 15.64 crore at that time) in 2014 and another one commercial property to M/s Orlando Trading Private Limited, at an agreed value of Rs 18 crore (having ready reckoner value Rs 19.84 crore) in 2016. However, they paid only Rs 10 crore for the second property till date. The firms are receiving rent of Rs 1.76 crore and Rs 1.39 crore per annum for these two properties respectively.
Both the companies are owned by Raj Shroff and his wife. Thus, Rakesh Wadhawan and Sarang Wadhawan cheated the Mack Star Marketing Private Limited by illegally selling above said properties without the consent of the majority shareholder (DE Shaw Group which holds 83.36 per cent shares) of M/s Mack Star Marketing Private Limited at very low price causing loss to Mack Star.
ED had earlier attached property worth Rs 34.36 crore in this case. Now, ED has attached immovable assets worth Rs 35.48 crore in the form of commercial properties of M/s Jindal Combines Private Limited and M/s Orlando Trading Private Limited, companies owned by Raj Shroff and his wife. The total value of attachment in this case now stands at Rs 69.84 crore.
Further investigation is in progress. (ANI)