Mumbai Police Closes Fraud Case Against HDIL Promoters Rakesh Wadhawan and Son

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The Economic Offences Wing (EOW) of the Mumbai Police has recently filed a 'C Summary' report, effectively closing the case against HDIL promoters Rakesh Wadhawan, Sarang Wadhawan, and others. The case involved allegations of illegal sale of office units in the Kaledonia commercial tower in Andheri East. The closure report states that no cognisable offence was found, dismissing the allegations as a civil dispute under the Companies Act. The case originated from a complaint by Mack Star’s Managing Director, alleging that HDIL promoters sold office units without the knowledge of complainants, leading to losses of around Rs 100 crore.

Investigations revealed that HDIL, facing financial difficulties, sold premium office spaces to politicians, businessmen, and creditors at heavily discounted prices. Even relatives of top Maharashtra politicians, including a former Chief Minister and a Union Minister, owned or had owned office units in Kaledonia, which were sold by the Wadhawans at heavy discounts amounting to tens of crores. Former gangster Jayendra Thakur, alias Bhai Thakur's nephew, also acquired two office units in Kaledonia at significantly discounted rates. The FIR was lodged in February 2023 by the Managing Director of Mack Star and later transferred to the EOW for further investigation.

Mack Star, a company that constructed the premium commercial tower Kaledonia in Andheri East in 2011, alleged that the Wadhawans and others sold office units in the building without informing the rightful shareholders. According to the FIR, the accused defrauded the complainants of approximately Rs 100 crore by selling office units to various creditors without their consent. As per the joint venture agreement, the Wadhawans had the authority to sell or make decisions regarding units priced up to Rs 20 lakh. However, they allegedly sold office units worth around Rs 100 crore. Sources indicate that the Wadhawans distributed premium office spaces in Mumbai’s prime Andheri locality to their creditors in lieu of outstanding debts, including top politicians who purchased them at heavily discounted prices. The investigation revealed that the Wadhawans had sold office units to several businessmen and politicians, including relatives of former Union Minister Sushil Kumar Shinde, at significantly discounted prices.

The ED investigation in 2021 revealed that two office units in Kaledonia, owned by Mack Star, were sold to Shinde’s daughter, Priti, and son-in-law, Raj Shroff, at approximately 50 per cent below the market price. Additionally, Wadhawans transferred two office units worth Rs 35 crore to Viva Holdings, a company owned by the family of Bhai Thakur, without making any payments to Mack Star. The ED's bank fraud investigation into Mack Star revealed that the alleged transaction was a sham, as the Rs 35 crore cheques issued as payment were never deposited or encashed. The allegations of fraud and cheating were levelled against the Wadhawans, but the EOW closure report stated that no cognisable offence was found. The decision to close the case has been questioned by the complainant, who alleges that the EOW ignored crucial evidence and failed to investigate the matter properly.

Here are the key points of the case: * The EOW filed a 'C Summary' report, closing the case against HDIL promoters Rakesh Wadhawan and son * The case involved allegations of illegal sale of office units in the Kaledonia commercial tower in Andheri East * The closure report states that no cognisable offence was found, dismissing the allegations as a civil dispute under the Companies Act * The ED investigation in 2021 revealed that two office units in Kaledonia were sold to relatives of former Union Minister Sushil Kumar Shinde at significantly discounted prices * The Wadhawans had sold office units to several businessmen and politicians, including relatives of former Union Minister Sushil Kumar Shinde, at significantly discounted prices * The complainant has questioned the EOW's decision to close the case, alleging that crucial evidence was ignored and the matter was not investigated properly. The case has raised questions about the integrity of the investigation and the role of politicians and businessmen in the alleged fraud.