After PMC Bank, HDIL's Wadhawan Duped Indian Bank of Rs279 Crore
The Chennai-based public sector Indian Bank has admitted to a major loan default of Rs279 crore by the realty group, Housing Development & Infrastructure Ltd (HDIL) Mumbai, and its suspended directors—Rakesh Kumar Wadhawan and son Sarang Wadhawan.
 
HIDL and the Wadhawans are already accused in the sensational Punjab & Maharashtra Cooperative Bank (PMC Bank) scam that blew up in the Indian banking sector three years ago in September 2019.
 
The Indian Bank has declared the Wadhawan father-son duo as 'Wilful Defaulters' for the sanctioned loan of Rs197.60 crore which has now grown to Rs278.80 crore, besides interest.
 
It has warned the people against entering into any deals with the properties of the HDIL and the Wadhawans and guarantors as a huge sum is recoverable from them.
 
Despite attempts by IANS, there was no response from the Indian Bank's top officials on the issue.
 
The Indian Bank's admission has again brought the PMC Bank scam of around Rs6,500 crore to the fore with prominent players including the Wadhawans and many others.
 
The Bank Depositors Protection & Welfare Society (BDPWS) secretary and banking expert, Vishwas Utagi, said it is "a matter of serious concern that the Wadhawans are now labelled as 'Wilful Defaulters' by a nationalised bank."
 
"In all such bank scams, the crime is known, the criminals are also known, but what about the recoveries? During the so-called efforts to discipline the errant players, the NCLT allows the banks to take upto 75%-80% 'hair-cuts', leading to barely 20%-25% recoveries. Ultimately, it's only the public which suffers," Mr Utagi said sharply.
 
Citing the Indian Bank example, he called upon Union finance minister (FM) Nirmala Sitharaman to immediately direct the Reserve Bank of India (RBI) to order all other public or private sector banks that have exposure to the Wadhawans.
 
"This will reveal the real extent of the frauds these scamsters have perpetrated on the banking sector and the Members of Parliament of all parties must take note of this in public interest. A mechanism must be evolved to ensure the maximum amounts are recovered and return to the economic mainstream," Mr Utagi urged.
 
Besides the PMC Bank and the Indian Bank, others from the Wadhawan clan—Kapil Wadhawan and Dheeraj Wadhawan—figure in the Yes Bank scam along with its founder Rana Kapoor and his family, and several other bigwigs, with probes by the Securities and Exchange Board of India (SEBI), enforcement directorate (ED) and central bureau of investigation (CBI).
 
Industry and banking circles claim that post-demonetisation, the realty sector alone could account for loan defaults of over Rs12 lakh crore, but most of it has yet come to light, as millions suffer.
 
Mr Utagi, through the BDPWS, is soon filing a PIL (public interest litigation) in Bombay High Court, highlighting the woes of all the bank depositors ruined by such scams and seeking suitable directions to ensure their amounts are recovered, the culprits punished and the banking system cleansed.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Free Helpline
Legal Credit
Feedback