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EOW arrests HDIL’s Sarang Wadhawan in a redevelopment fraud case

Mumbai: Sarang Wadhawan, promoter of now beleaguered Housing Development and Infrastructure Ltd (HDIL) was arrested by the Economic Offence Wing (EOW) of the Mumbai Police, Monday in a case pertaining to alleged irregularities in a redevelopment project.

Wadhawan and his father, Rakesh are currently in judicial custody at Mumbai’s Arthur Road jail for their alleged roles in the over Rs 6,000 crore alleged fraud caused to Punjab & Maharashtra Cooperative (PMC) bank.

Sarang who was arrested on Monday will be produced before a local court for want of custody.

In 2018, based on the complaint given by Maharashtra Housing and Area Development Authority (MHADA), a first information report (FIR) was filed by the EOW against Guruashish Constructions Private (Pvt) Limited (Ltd), a subsidiary of HDIL. The case has been registered against the subsidiary, its directors including Wadhawan under certain sections of the Indian Penal Code (IPC) including those under sections 120B (criminal conspiracy), 409 (criminal breach of trust) and 420 (cheating).

According to the complaint, MHADA had leased its land parcel in suburban Goregaon to Guruashish Construction to build and redevelop nearly 3,000 flats. Of these, 672 flats were to be built for rehabilitation of Mhada tenants, and sale rights for the remaining flats were with the HDIL subsidiary. MHADA alleges that instead of redeveloping the plot, they allegedly sold it to nine different developers for Rs 1,030 crore.