PMC Bank Scam: ED Carries Out Fresh Raids on HDIL's Wadhwan
The Enforcement Directorate (ED) said, on Monday, that it is carrying out raids at two places in Mumbai of Housing Development and Infrastructure Limited (HDIL) chairman Rakesh Wadhawan and his son Sarang Wadhawan following fresh revelations in the Punjab & Maharashtra Cooperative (PMC) Bank fraud case, as the ED found another jet and a yatch registered in the names of the HDIL's promoters.
 
"During raids today (Monday), we identified a huge bungalow of 22 rooms in Alibag. It will be attached shortly," said a senior ED officer, adding that one more private jet has been found to be in the name of the promoters of HDIL. 
 
The officer also said that the agency, during searches, has also found that the owners of HDIL gifted a number of houses in posh locations in Maharashtra to top politicians. 
 
However, the agency is tightlipped about the names of these politicians, as of now.
 
On Saturday, the agency attached a private jet and jewellery worth Rs60 crore of HDIL chairman Rakesh Wadhawan and his son Sarang Wadhawan. The agency said it is in touch with authorities in Maldives to attach the Wadhawan's yacht which is anchored there. 
 
ED has also frozen bank accounts of Waryam Singh, former chairman of PMC Bank, and also deposits/fixed deposits of around Rs10 crore. 
 
On Friday, the agency had seized 12 high-end cars which included two Rolls Royce, two Range Rovers and one Bentley of the HDIL chairman during raids at six places in Mumbai. The agency carried out raids, including at head office of HDIL at Bandra (East) and residence of Rakesh Wadhawan which is known as Wadhawan House at Bandra (West). The financial investigating agency also raided premises of Waryam Singh and former PMC Bank managing director (MD) Joy Thomas.
 
The agency had filed a money laundering case against HDIL promoters in the Rs4,355-crore bank fraud case. 
 
The ED has said that they are also looking into the roles of seven directors of HDIL, including Rakesh Wadhawan and his son Sarang Wadhawan. Both were arrested on Thursday by Mumbai police for not cooperating with the investigators.
 
The agency is also looking for details of other 18 companies linked to HDIL. 
 
The ED has started probe taking cognisance of Mumbai police's Economic Offences Wing's (EOW) FIR into the matter.
 
It is alleged that HDIL, which is facing bankruptcy proceedings, and its group companies had taken huge loans from PMC Bank.
 
The FIR with Mumbai police was filed by by Jasbir Singh Matta, manager, recovery department, of PMC Bank. It is alleged that as many as 21,049 fictitious bank accounts were allegedly created to hide the loans, which were disbursed in violation of RBI norms.
 
It is also alleged that HDIL accounted for nearly 73% of the bank's total loans. Out of the Rs4,355 crore of loans under the scanner, around Rs2,146 crore were transferred to accounts held by the Wadhawans. An account belonging to Wadhawan had a balance of Rs2,009 crore on 31 August 2019, according to the FIR.
 
During probe by the Reserve Bank of India, it has been found that directors of PMC Bank had replaced 44 suspicious loan accounts with 20,149 fictitious bank accounts whose individual balances were low.
 
The 44 borrower accounts allegedly linked to HDIL were masked by tampering with bank software. Former MD Mr Thomas was behind the masking of the borrower accounts.
 
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.
  • Like this story? Get our top stories by email.

    User

    The NHAI Crisis Part 2: Making Roads the Right Way!
    While we need more roads in India, there are several issues that we need to resolve, including improving old and existing roads, widening them and adding services along with the roads.  As I mentioned in my previous article, we need to bring in practical perspective to the road infrastructure. However, what we need is a system—not simply individual projects. The projects should work together to achieve better transportation performance. What does that mean? 
     
    Better Highways Systems Have Defined Characteristics
     
    In general, a good highway system must allow for one-entry-one-exit between destinations. Thus, if you are travelling from Mumbai to Delhi, the vehicle should enter on the highway once and exit at Delhi. It should be able to by-pass all the cities in between.
     
    Low fatigue for long distance means two things—allowing high average speed and longer hours of travel. It should be possible to operate transport vehicles 24x7 (using driver pairs). There should be adequate rest stops facilities. 
     
    The hub & spoke design of highway system makes it economical to use large capacity trucks on trunk routes and small capacity vehicles to reach the city. This means the long-haul trucks should be able to get in and out of truck parks or logistic hubs quickly. It means we need many logistic hubs wherever there is a flow of goods out of the highway. The size of these hubs will depend upon the size of trade in that place. 
     
    The highway system should also be isolated, i.e., local traffic should not interfere with the highways. It can be done by using exits at longer intervals. This means highways need to be fenced. We cannot have grain laid out, cows sitting and people having picnic in the median garden in a highway system. This reduces the speed on the highways and creates bottlenecks or worse accidents. I have seen this on GQ roads.
     
    Throughput design means that we aim for certain number of vehicles per day between city pairs and compute the number of vehicles per day in each of the segments of the roads. The throughput is estimated using adequate buffers based on models that use various variables such as economic activity between city pairs etc. Thus, within a Mumbai-Delhi highway, you may need different lanes. Mumbai to Vadodara may need six lane road, Vadodara to Jaipur may be four lane whereas between Jaipur to Delhi may need six lanes.
     
    Transportation systems are flow-based design systems. The flow of traffic is the focus. Anything that stops the flow leads to losses. This means seamless lane modifications rather than abrupt ones. It means having buffer capacity even at exits.
     
    Thus, our Mumbai Delhi highway easier exits for Surat, Ahmedabad, and types of projects Vadodara city itself. If the volume is not designed properly, then you will end up with bottlenecks at these exits.
     
    Four Types of Projects
     
    The projects that together will become an efficient highway system are of four basic types—each with different earning and benefits.
     
    Revenue earning projects benefit the stakeholders—either through reduced time, reduced fatigue, lower cost, and more capacity. The traffic on these roads is ready to pay for these advantages. Such routes have a mix of people and goods traffic. These routes can have many different types of support facilities. The supporting infrastructure is also more (to account for higher traffic loads and efficiency demands).
     
    Connectivity projects aim to connect remotely located citizens and locations.
    There is no expectation of profitable traffic on these roads. This is cost-based infrastructure. Unfortunately, we still have places that do not have ANY road in the country. These projects will have all the basic infrastructure, but nature and number of facilities will, of course be different.
     
    Enabler projects are those which by themselves do not yield any benefit but help improve revenues of other projects. These could be feeder roads, debottlenecking, setting up electronic tolling, etc. Upgrading connectivity projects to revenue earning projects also fall into this type.
     
    Finally, there are build-and-they-shall-come projects. These projects are undertaken in anticipation that development may take place along this corridor and in future it becomes a valuable infrastructure. The name comes from a railway constructed in US which led to development of western parts. There are challenged and coordinated development planning is required to achieve the goals of these projects.
     
    Two Ways to Prioritising Projects 
     
    Return on investment method is generally used for revenue generating projects where the expected revenues can be measured and estimated. But it cannot assess the benefits of projects in all cases.
     
    In such cases, incremental benefit method, is used to measure and compare benefits from existing roads and potential gains when the project is implemented. It gives a clear performance benchmark for the design of new projects. Thus, if the project is meant for de-congestion then you measure time.
     
    Smoother project Execution Requires Pre-planning
     
    Stakeholder onboarding allows the concerns of stakeholders to be addressed transparently BEFORE the project is cleared. Many projects are delayed in courts by activist groups for unreasonable reasons. If every act of the executive and every step of execution has to go through validation by courts, then development will be costly and delayed. Part of this opposition to the project can be avoided using this process.
     
    Complete handover- complete takeover style is better suited for infrastructure. The entire project stretch should be handed over at a particular date and the vendor should hand it back on designated dates. The more firmly we can adhere to these dates the lesser it costs and better the quality of the output.
     
    This means completing land acquisition BEFORE awarding of tender is critical. Infrastructure projects are entirely a deadline-based ventures. The equipment, teams and experts used is of high-value and cannot remain idle. If the project commencement and construction has hiccups it becomes too costly too quickly.
     
    Effective monitoring is critical. Monitoring is both internal and external. It includes monitoring of quality of materials and the technical process. It also means you need to have clean, updated financials available online for easy inspection by general public through a website. Monitoring is best
     
    Focus on Enabling Projects First
     
    When we evaluate the projects under the Bharatmala Scheme, enabler projects seem to show the maximum promise. These have great potential in unleashing the earning capacity. It also benefits the end user delivering perceptible improvement in road experience.
     
    Debottlenecking type of projects have great cost-benefit advantages. It involves streamlining the lanes across the highway, building by-passes, decongesting the entry and exit points etc. Such projects lead to improvement in outcomes at substantially lower cost. 
     
    Electronic tolling is a project that needs to be undertaken on war footing. NHAI needs to focus on converting all tolled roads to 100% electronic tolling roads. This should reduce the toll leakages and reduce corruption in tolling (we will discuss this in next article).
     
    Developing proper logistic parks with focus on transportation efficiency will also help improve the utilisation of roads. The flow of goods to this park (both from city side and from highway side) should be smooth.
    In the next article, we will examine the reason for mess current mess in NHAI.
     
    You may also want to read…
     
     
    (Rahul Prakash Deodhar is a private investor and Advocate, Bombay High Court. He can be reached at [email protected], on twitter at @rahuldeodhar or at his website www.rahuldeodhar.com)
  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Ranbir Lamba

    5 days ago

    Stretch according to reach. Cut your coats according to cloth
    Don't do haphazard construction go as per priority of needs & money available .

    RAMESH JAGANNATH MODI

    1 week ago

    What would be the status of investors who had invested in NHAI Tax Free Bonds? Should they retain these bonds?

    REPLY

    Shishir cera

    In Reply to RAMESH JAGANNATH MODI 1 week ago

    You r asking a pussy

    Aarey & Metro3: Supreme Court Asks Maharashtra Govt not to Cut More Trees
    The Supreme Court on Monday asked the Maharashtra government not to cut more trees in Aarey colony for proposed carshed for the Metro3. 
     
    A Special Bench of the Supreme Court comprising Justices Arun Mishra and Ashok Bhushan, while hearing a public interest litigation (PIL) told the state government not to cut any further trees in Aarey and maintain status quo till further hearing. 
     
    A delegation of students wrote a letter to the Chief Justice seeking the Supreme Court's intervention on concerns of cutting down of over 2,500 trees in Mumbai's Aarey forest. Some 1800 trees were cut in the night, the students had said. The Chief Justice converted the letter in to a PIL, which was heard today.
     
    Justice Mishra says that felling of trees should be halted for now and adds that survival rate of the saplings be analysed.
     
    Representing Maharashtra, solicitor general Tushar Mehta suggested the Bench that the case be taken up by the environment bench when the court reopens after Dussehra break. He also said, "No further cutting is required anymore. We are all concerned about the ecological impact."
     
    On 21st October, the matter would to be taken up by the forest bench of the apex court to examine whether it is forested area or eco-sensitive zone.

     Appearing for petitioners' senior advocates Sanjay Hegde and Gopal Shankaranarayanan told the court that the issue whether Aarey is a forest or not is pending with the Supreme Court. They also told the court that National Green Tribunal (NGT) is hearing the issue whether the area is eco sensitive zone or not.

    The submission came on court's queries whether the area was forest or eco-sensitive zone.

    The Supreme Court also sought report from Maharashtra government on the afforestation drive to compensate the tree cutting.

    Meanwhile Solicitor General Tushar Mehta told the court over 20,000 trees were planted in last few years by the government. But, it failed to convince the top court, which asked the state to place a report with photographs mentioning how many trees have since survived.

    The Aarey issue has been flash point between environmentalists, residents on one side and proponents of infrastructural development on the other side.
     
    Aarey Colony, a green belt in suburban Goregaon which has more than five lakh trees, together with Sanjay Gandhi National Park, is known as the green lungs of Mumbai.
  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Deepak Narain

    1 week ago

    2500 fully grown trees cut for providing space for carshed for Metro 3. Instead of coming by their cars, the Metro users could come by taxi and the trees could be saved.
    They all must be 50 or more years old. It takes years to grow and they cut them over-night in a hurry. Very sad, really! Nobody is genuinely concerned. The world is talking so much about climate change and care nothing about it. Ours is a society of hypocrites.

    REPLY

    B. KRISHNAN

    In Reply to Deepak Narain 1 week ago

    Sir, with due respect, the "car shed" is not meant for cars/vehicles of commuters, but in this case the "car shed" is for the metro cars and their maintenance etc.

    B. KRISHNAN

    1 week ago

    There is a report that the metro line (for which these trees are being cut) will reduce the carbon print by several lakh tons per month, in Mumbai. Blindly stopping of developmental work is short-sighted!

    Rajiv Gupta

    1 week ago

    SC should seek answers in hearing on 21.10.19 & put in public domain:
    1. Why HC did not exercise due diligence in allowing time for appeal & maintaining status quo till then.
    2. Did the HC not anticipate that trees will be cut overnight & then there will be no case left for the SC to decide?
    3. Why there was a rush & the trees cut during the night by the Metro authorities?
    4. Who all were involved in the sinister plan of cutting the trees so that there is no case left for SC to decide?
    5. Was the decision fixed in advance & made known so that tree cutting at such a vast scale was fully organized?
    6. Why people & activists taken for a ride & jailed ?
    7. Was cutting of trees & creating a depot at Aarey the only solution?
    8. Why a solution of alternative site in Jogeshwari given by Mr. Waikar of Shiv Sena not considered favourably & implemented?
    9. Is development at any cost sustainable strategy?
    10. Versova to Ghatkopar metro--is there any study to show decrease in traffic on roads? Traffic in Sakinaka area is still chock a block. We are twenty years behind in terms of development & thinking about it.
    11. Is SC fully satisfied with the conduct of the HC in this matter?'

    Pankaj Mahidhar

    1 week ago

    Judiciary in India from top to bottom is the biggest road block to development and even justice itself. It picks up matters adhoc without understanding the implications and delays vital projects for years at the cost of the common man. Leaving vital matters related to life and death of people, it will pick up trivial matters without adequate understanding of the matter and hold the projects to ransom at the behest of few rogue activists.

    REPLY

    B. KRISHNAN

    In Reply to Pankaj Mahidhar 1 week ago

    Capricious is what I would call the judiciary's way of reacting to civic issues.

    Hemant

    In Reply to Pankaj Mahidhar 1 week ago

    Well said.

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone