MUMBAI: A special Prevention of Money Laundering Act court on Tuesday extended the
enforcement directorate custody of HDIL chairman Rakesh Wadhawan and his son Sarang in the Rs 4,355 crore
PMC Bank loan fraud case to Thursday.
Seeking an extension of their custody, ED special counsel Kavita Patil submitted that the investigating agency wanted to find the cash flow and the money trail as the funds had been further transferred from the properties in which they had invested. “We have suspicion that they have diverted funds in other entities too,” said Patil.
Patil submitted that so far over 50 properties have been identified. It was submitted that statements of HDIL and bank employees were recorded. Patil said the accused needed to be confronted with details from the statements. “What the accused are revealing are already in the book of accounts,” Patil said, pressing for further custody. The plea said the accused had played a crucial role in laundering huge amounts and were concealing material facts from the investigation.
Opposing the ED plea for custody, defence advocate Amit Desai said the details of the money trail were in the books already in the custody of the police.