ED Submits Third Supplementary Charge Sheet in PMC Bank Fraud Case
The Enforcement Directorate (ED) has filed a third supplementary charge sheet against eight additional accused in the ₹6,117-crore fraud involving the Punjab and Maharashtra Co-operative (PMC) Bank and real estate firm HDIL.
Pmc BankFraudEdHdilBenamidarsReal Estate MaharashtraAug 02, 2025
According to the agency’s charge sheet, HDIL promoters Rakesh Kumar Wadhawan and his son Sarang Wadhawan, with the help of other accused persons, allegedly diverted ₹82.3 crore of PMC Bank’s loan funds to fraudulently acquire agricultural land parcels in the Vijaydurg village in Sindhudurg for the development of the proposed Vijaydurg Port project, which never materialised.
The funds were initially transferred to the accounts of 39 local farmers through HDIL subsidiary companies Privilege Power and Infrastructure Limited and Privilege Hi-Tech Infrastructure Limited, officials said. The accused, in connivance with an HDIL employee, Mukesh Khadpe, then persuaded the farmers to acquire land parcels in their names and, thereafter, transfer them to an HDIL group company in exchange for commissions and other benefits, according to the charge sheet. The agency had earlier provisionally attached land parcels spanning around 1,807 acres, with a registered value of ₹52.9 crore.
On July 25, a special court for PMLA cases noted, “Considering the prosecution complaint, the supporting documents and the material on record, it shows that the ED has collected sufficient evidence against the accused.”
The ED had initiated its investigation based on a case registered against Rakesh and Sarang Wadhawan, then PMC Bank directors Joy Thomas and Waryam Singh, and others under sections of the Indian Penal Code. The agency’s investigation revealed that HDIL and its group companies allegedly availed overdraft (OD) loans from PMC Bank without proper documentation and mortgage. The OD limit was allegedly enhanced periodically to ensure that the loan accounts of HDIL and its group firms were not classified as non-performing assets (NPAs) and, instead, the bank capitalised the interest part and enhanced the OD limit to that extent.
The investigation also revealed the alleged fabrication and falsification of PMC Bank’s loan accounts, wherein 44 NPA loan accounts of the HDIL group were replaced with 21,049 fictitious accounts to deceive RBI and depositors, according to the ED.
Frequently Asked Questions
What is a benamidar?
A benamidar is a person or entity in whose name a property is held, but they are not the actual owner. This practice is often used to hide the true ownership of assets.
Who are the main accused in the PMC Bank fraud case?
The main accused in the PMC Bank fraud case include HDIL promoters Rakesh Kumar Wadhawan and his son Sarang Wadhawan, as well as former PMC Bank directors Joy Thomas and Waryam Singh.
How much money was allegedly diverted in the fraud?
The fraud involved the alleged diversion of ₹82.3 crore of PMC Bank’s loan funds to acquire agricultural land parcels for a proposed port project in Vijaydurg village, Sindhudurg.
What did the ED do with the acquired land?
The ED provisionally attached land parcels spanning around 1,807 acres, with a registered value of ₹52.9 crore, which were acquired fraudulently.
What is the status of the legal proceedings?
A special court for PMLA cases has noted that the ED has collected sufficient evidence against the accused, and the legal proceedings are ongoing.
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