In a case involving irregularities in the redevelopment of the Patra Chawl Project at Goregaon, Mumbai by M/s Guru Ashish Construction Pvt Ltd, the Directorate of Enforcement has provisionally attached two immovable properties totalling Rs 31.50 Crore under the Prevention of Money Laundering Act, 2002 (PMLA). Rakesh Kumar Wadhawan and Sarang Kumar Wadhawan, directors of Guru Ashish Construction Pvt Ltd, Mumbai, own the lands represented by the attached assets in Goa.
On the basis of an FIR filed by the EOW in Mumbai against M/s Guru Ashish Construction Pvt Ltd, Rakesh Kumar Wadhwan, Sarang Kumar Wadhwan, and others, and a complaint made by the Executive Engineer of the MHADA in Mumbai under various sections of the IPC, the ED has opened an investigation under the provisions of the PMLA, 2002.
According to an investigation conducted under the PMLA, M/s Guru Ashish Construction Pvt Ltd was given the task of redeveloping the Patra Chawl Project in order to rehabilitate 672 residents. Rakesh Kumar Wadhawan, Sarang Wadhwan, and other individuals served as the directors of M/s Guru Ashish Construction Pvt Ltd. during the time. The society, MHADA, and M/s Guru Ashish Construction Pvt Ltd. inked a tripartite agreement.
The developer was required under the agreement to give the units to 672 residents, build flats for MHADA, and then sell the remaining space. Without building the rehab section for the 672 evicted tenants and the MHADA share, the directors of M/s Guru Ashish Constructions deceived MHADA and sold the FSI to 9 developers, collecting a net value of around Rs 901.79.
Moreover, M/s Guru Ashish Construction Pvt Ltd launched the “Meadows” project and received bookings from prospective apartment purchasers totalling around Rs 138 Crore. The Directors of M/s Guru Ashish Constructions Pvt Ltd generated about Rs 1039.79 crore in total proceeds from crime as a result of their illicit actions.
It was discovered during the further investigation that Rakesh Kumar Wadhawan and Sarang Wadhawan diverted funds from HDIL and/or its group companies, including GACPL, Sapphire Land Development Pvt Ltd, Satyam Realtors, and others, into their personal bank accounts after multiple layers of layering. This occurred after receiving the aforementioned POC in the bank accounts of HDIL and its group companies.
Rakesh Wadhawan used a POC of Rs 38.5 Crore from his account between 2011 and 2016 to prepay the instalments on a Rs 28.5 Crore loan from India Bulls Home Finance Limited. For the purpose of purchasing 2 plots in North Goa with an area of 1250 square metres and 15300 square metres for a total of Rs. 31.50 crores in 2011, the loan was made available at a variable interest rate of 18.5%. Sarang Wadhwan also sent Rs. 2 crores from his own account to the plots’ seller. More research is now being conducted.
