According to ED, investigation below PMLA was initiated on the basis of FIR registered by EOW of Mumbai Police below sections 409, 420,465,466,471 study with 120 B of IPC against HDIL, promoter Rakesh Kumar Wadhawan, his son Sarang Wadhawan, former chairman Waryam Singh, former managing director of PMC Bank Joy Thomas and other folks for causing loss to the tune of ₹4355 crores to PMC Bank and corresponding obtain to themselves. PMC Bank depositors had spent final year holding protests, meeting politicians and writing to different authorities in an work to get their difficult-earned cash back.
Earlier, ED has attached many properties of Rakesh Kumar Wadhawan, Wadhawan loved ones trust and other folks totalling to ₹293 crore and jewelry worth ₹63 crores has been seized. A prosecution complaint has been filed in this case against Rakesh Kumar Wadhawan and other folks for the offence of cash laundering below PMLA, 2002.
Pravin Raut was arrested in connection with the redevelopment of Patrawala Chawl in Goregaon which has been delayed and mired in controversies due to the fact 2007 right after an agreement was signed with Guruashish Construction Private Limited.
In 2007, MHADA permitted a developer to redevelop and rehabilitate 672 chawl tenants. However, it received complaints that he sold components of land to other builders. It has been more than a decade that the residents have handed more than their properties to the builder for redevelopment. The redevelopment work stopped in 2015 and residents have not been paid any rent for the previous 5 years. MHADA has alleged that the developer did not comprehensive the project and as an alternative allotted the redevelopment of the plot to nine diverse developers for more than 1000 crore. No consent was taken from the authority and there have been violations as per the agreement. The housing division had received a lot of complaints from residents that the firm had provided the developer’s sale element in the project to an additional developer.