ED attach 3 hotels in Delhi, belong to Mumbai based HDIL

MUMBAI: Enforcement Directorate (ED) has provisionally attached three hotels in New Delhi worth Rs 100 crore that are associated with promoters of Mumbai based Housing Development Infrastructures Ltd. (HDIL) company in the Punjab and Maharashtra Cooperating (PMC) bank fraud case.
All the three hotels now named as FAB Hotels, whereas earlier names were, Hotel Conclave Boutique at Kailash Colony, Hotel Conclave Comfort East of Kailash, and Hotel Conclave Executive at Kalkaji.
ED alleged that money obtained from PMC fraudulently was used for the purchase of these hotels. It is alleged that HDIL and its promoters –Rakesh Wadhawana and his son Sarang Wadhawan—with the help of earlier management of the PMC had obtained loan fraudulently. HDIL allegedly defaulted the loan and caused Rs 4,355 crore loss to the bank. Wadhawans are in judicial custody.
Earlier ED had attached assets worth Rs 193 crore that belonged to Wadhawans along with the jewelery worth Rs 63 crores.
Recently, the ED had filed the chargesheet in the PMC money laundering case against HDIL promoters, Rakesh Wadhawan, his son Sarang aka Sunny and former MD of PMC Joy Thomas along with others. In which, the ED alleged that Wadhawans and HDIL opened over 44 accounts overdraft facilities and defaulted the Rs 6,117 crore bank payment (Principal amount is Rs 2,540 crore and interest is Rs 3,577 crore). From 2013, Wadhawans started defaulting payment due to slowdown in the market and thereafter the bank started evergreening the accounts.
The alleged that the bank would enhance the loan withdrawal limit of HDIL Group companies to settle their pending dues so that the accounts were not declared NPAs (Non-Performing Assets).