Mumbai Police Closes Fraud Case Against HDIL Promoters: Rakesh and Sarang Wadhawan
The Economic Offences Wing (EOW) of the Mumbai Police has filed a 'C Summary' report, effectively closing the case against HDIL promoters Rakesh and Sarang Wadhawan. The case involved allegations of illegal sale of office units in the Kaledonia commercial
HdilMumbai PoliceKaledoniaEconomic Offences WingRakesh WadhawanReal Estate MaharashtraFeb 26, 2025
The case involved allegations of illegal sale of office units in the Kaledonia commercial tower in Andheri East, a prime location in Mumbai.
The closure report states that no cognisable offence was found, dismissing the allegations as a civil dispute under the Companies Act.
The case originated from a complaint by Mack Star’s Managing Director, alleging that HDIL promoters sold office units without the knowledge of complainants, leading to losses of around Rs 100 crore.
Mack Star, a company that constructed the premium commercial tower Kaledonia in Andheri East in 2011, claimed that the Wadhawans and others defrauded the complainants by selling office units to various creditors without their consent.
According to the joint venture agreement, the Wadhawans had the authority to sell or make decisions regarding units priced up to Rs 20 lakh.
However, they allegedly sold office units worth around Rs 100 crore.
Sources indicate that the Wadhawans distributed premium office spaces in Mumbai’s prime Andheri locality to their creditors in lieu of outstanding debts, including top politicians who purchased them at heavily discounted prices.
Even relatives of top Maharashtra politicians, including a former Chief Minister and a Union Minister, owned or had owned office units in Kaledonia, which were sold by the Wadhawans at heavy discounts amounting to tens of crores.
Former gangster Jayendra Thakur, alias Bhai Thakur's nephew, also acquired two office units in Kaledonia at significantly discounted rates.
The FIR was lodged in February 2023 by the Managing Director of Mack Star and later transferred to the EOW for further investigation.
Mack Star, a company that constructed the premium commercial tower Kaledonia in Andheri East in 2011, alleged that the Wadhawans and others sold office units in the building without informing the rightful shareholders.
According to the FIR, the accused defrauded the complainants of approximately Rs 100 crore by selling office units to various creditors without their consent.
Mack Star was formed by HDIL promoters in 2002 with the intention of venturing into the beverage and IMFL bottling business.
The DE Shaw Group, a New York-based hedge fund, invested in Mack Star through its Mauritius-based subsidiary, Ocean Deity.
DE Shaw has invested approximately $3 billion in India across various ventures.
In 2008, DE Shaw injected Rs 1,000 crore into Mack Star, acquiring a 98% stake, while HDIL promoters retained the remaining 2%.
Between 2011 and 2019, the HDIL Group faced severe financial difficulties, owing money to numerous creditors, including influential businessmen and politicians.
To settle these debts, HDIL allegedly transferred two premium offices worth over Rs 40 crore to the relatives of former Union Minister Sushil Kumar Shinde at a payment of less than Rs 20 crore.
An ED investigation in 2021 revealed that two office units in Kaledonia, owned by Mack Star, were sold to Shinde’s daughter, Priti, and son-in-law, Raj Shroff, at approximately 50% below the market price.
Additionally, Wadhawans transferred two office units worth Rs 35 crore to Viva Holdings, a company owned by the family of Bhai Thakur, without making any payments to Mack Star.
The ED's bank fraud investigation into Mack Star revealed that the alleged transaction was a sham, as the Rs 35 crore cheques issued as payment were never deposited or encashed.
In 2017, DE Shaw officials were shocked when they discovered that units in Kaledonia were sold without their knowledge.
In 2019, a police complaint was filed with the EOW, highlighting that the misappropriated properties had a market value exceeding Rs 500 crore.
However, the police only registered an FIR in February 2023 at NM Joshi Marg, which was subsequently transferred to the EOW.
Sections 420 (cheating), 409 (criminal breach of trust), 423 (fraudulent execution of deeds), and 120B (criminal conspiracy) of the IPC were invoked against HDIL promoters and their creditors who purchased the units.
The CBI had also previously registered an FIR against HDIL promoters in the Yes Bank case for allegedly defrauding Mack Star of Rs 200 crore, prompting the ED to initiate further investigations.
During its investigation, the EOW wrote to the Registrar of Companies (ROC) in July 2024, seeking details on Mack Star's shareholding pattern.
The ROC Deputy Registrar, Sai Shankar Landa, submitted a report to the NCLT, which was later cited in the C Summary report.
The ROC report alleged that DE Shaw had fraudulently increased its shareholding in Mack Star in 2014 without holding an Extraordinary General Meeting (EGM).
However, in September 2024, Mack Star's MD filed a complaint with the Ministry of Corporate Affairs, alleging that the ROC report was false and was being used by the accused to close the FIR against them.
Subsequently, the ROC withdrew the report and informed the EOW on October 1, 2024.
Despite this, EOW officials filed a closure report in the Mack Star FIR on February 10, 2025, in Esplanade Court, Mumbai, basing the closure of FIR solely on the ROC report given by Deputy Registrar Landa to NCLT, ignoring the fact that the report was withdrawn by ROC in October.
Mackstar MD Ranjan Saha stated, \
Frequently Asked Questions
What is a 'C Summary' report?
A 'C Summary' report is filed by the police when an investigation concludes that no offence has been committed. This means the complaint is deemed 'false' or 'neither true nor false,' leading to case closure due to a lack of evidence or mistaken complaint.
What was the main allegation against HDIL promoters?
The main allegation against HDIL promoters Rakesh and Sarang Wadhawan was the illegal sale of office units in the Kaledonia commercial tower in Andheri East, leading to losses of around Rs 100 crore.
Who is Mack Star and what was their role in the case?
Mack Star is a company formed by HDIL promoters in 2002. They constructed the premium commercial tower Kaledonia in Andheri East in 2011. The company alleged that the Wadhawans and others defrauded the complainants by selling office units to various creditors without their consent.
What did the ROC report claim about DE Shaw's shareholding in Mack Star?
The ROC report alleged that DE Shaw had fraudulently increased its shareholding in Mack Star in 2014 without holding an Extraordinary General Meeting (EGM). However, the ROC later withdrew this report.
How did the EOW handle the ROC report in the Mack Star FIR?
Despite the ROC withdrawing their report, EOW officials filed a closure report in the Mack Star FIR on February 10, 2025, in Esplanade Court, Mumbai, basing the closure of FIR solely on the ROC report given by Deputy Registrar Landa to NCLT.
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