Rejecting the bail plea of Housing Development and Infrastructure Limited (HDIL) promoters father-son duo Rakesh Wadhawan and Sarang Wadhawan in the Economic Offences Wing (EOW) case against them, the sessions court made some stinging remarks against them.
The duo had argued that ingredients of the offences of cheating and conspiracy are not made out against them as PMC officials had misrepresented facts to RBI in hiding their outstanding loans. They had no knowledge or part in the matter. Their advocates Amit Desai and Subodh Desai had argued that non-disclosure of non-performing assets and falsification of accounts was done was a result of the bank’s aspirations to grow.
Special Public Prosector for the EOW Ajay Misar had opposed their bail plea arguing that adequate properties were not mortgaged by HDIL and the properties that were mortgaged did not have bonafide titles. He also told court that the bank officials conducted internal matters as per the desire of the applicants and that they had command over these matters. He also pointed out that about nine lakh depositors of the bank were affected by the fraud.
Additional Sessions Judge Sanjay N. Yadav said in his order that allegations against them are serious and there is material indicating their involvement in the crime. “There is nothing indicating that the accused have co-operated in the investigation. On the contrary, the accused is trying to shift the burden on the officials of the bank,” it said.
Regarding their argument of not having a role in the conspiracy, the court said that the act of intentional omission on part of the bank officials was in connivance with them. There is a loss of 6,121.07 crores, it mentioned. It cannot be said that they are not responsible for the huge fraud. “They cannot shirk their involvement by contending that the offence is committed by the PMC bank officials and they have no role in it,” the bail rejection order said, adding that “It is clear that the applicants have reaped huge financial benefit from the PMC bank with intention of non-repayment.”
Further, Judge Yadav stated that the act of submitting title deeds without bonafide title shows their role in the crime. Remarking on their non-repayment of loans availed and non-action by bank officials, the court said it suggests that the Managing Director Joy Thomas, Chairman Waryam Singh, the directors of the bank and Rakesh Wadhawan and Sarang Wadhawan are “hand in glove” and that their conduct shows they have all “conspired to commit the offence and cheat the bank”.
