Major Trouble for HDIL, Managing Director Summoned By Mumbai Police For “loan misappropriation”

New Delhi: In yet another case of legal action on realtors, the Managing Director of Housing Development and Infrastructure (HDIL) Sarang Wadhawan has been summoned by the Economic offenses Wing of Mumbai Police, over enquiries into an alleged case of loan misappropriation and also illegal sale of flats, according to a news report by Economic Times.

Two complaints against the builder were received recently and the summons were issued after that. In August, a police complaint was filed by one of the directors of Mack Star Marketing which is a joint venture entity between HDIL and Ocean Deity Investment Holdings. The complainant represents Ocean Deity Investment Holdings.

Mumbai Police had issued a ‘look-out’ notice for Wadhawan to make sure that he does not run away from the country until the investigation was complete.  

The complainant has alleged that a part of the proceeds from sale of some of the office spaces in a commercial building Kaledonia at Andheri in Mumbai was “diverted to HDIL at the behest of HDIL promoters”. Kaledonia is owned by Mack Star.

He also alleged that a part of the sale proceeds that was received by Mack Star was diverted from company’s bank accounts. He also said in his comlaint that some office units were forcefully sold at “undervalued prices” to companies related to the promoters of HDIL.

Interestingly, insolvency proceedings were initiated by National Company Law Tribunal against HDIL in August this year. Even in 2018, such proceedings were started by NCLT against the firm but the realty firm had settled the matter then. 

HDIL is in the middle of controversy these days regarding the method of availing loans from various banks including PMC Banka and the uses to which the loans were put to.