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PMC Bank case: Promoters of HDIL arrested, property worth Rs 3,500 cr frozen

Rakesh Wadhawan and his son Sarang Wadhawan, promoters of HDIL that set off the massive crisis at the Punjab Maharashtra Co-operative (PMC) Bank, were arrested today.

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Rakesh Wadhawan with his son sarang wadhawan

Rakesh Wadhawan and his son Sarang Wadhawan of the real estate firm HDIL that set off the massive crisis at the Punjab Maharashtra Co-operative (PMC) Bank, following a loan default of Rs. 6,500 crore, were arrested today – Thursday, Oct 3 – by the Economic Offences Wing (EOW) of the Mumbai Police.

Properties worth Rs 3,500 crore of HDIL have also been frozen by the EOW, reported News18.

Rakesh Wadhawan and Sarang Wadhawan, also the promoters of Housing Development and Infrastructure Ltd (HDIL), were named in a police complaint that also accused the bank’s management of concealing non-performing assets and disbursing loans to HDIL leading to a loss of at least Rs. 4,300 crore.

Rakesh Kumar Wadhawan is the executive chairman of the HDIL, while Sarang Wadhawan is managing director.

The move came a few days after the government issued a look-out circular against the two directors after preliminary findings allegedly revealed financial irregularities at HDIL. A look out circular is issued against a person directing the immigration authorities to ensure that he or she does not leave India through an airport or seaport.

The Mumbai Police had on Monday filed a case against the former bank management and promoters of HDIL in the PMC Bank case and said a special investigation team will be probing it.

Crisis-hit HDIL had said that loans taken from banks, including PMC Bank, were in normal course of business after providing adequate security cover and that it is ready to discuss with the bank to protect the interest of depositors.

PMC’s exposure to HDIL group is reported to be nearly 73% of its total loan book size of Rs 8,880 crore as of September 19, 2019.

Currently, HDIL is reported to be developing various projects at Kurla, Nahur, Mulund and Palghar and has a residential portfolio of 86.22 lakh sq ft under construction.

It has a land reserve of around 193 million sq ft as on March 31, 2019, with 90 per cent of its land reserves in Mumbai Metropolitan Region, as per the 2018-19 annual report. Incorporated in 1996, Mumbai-based HDIL mainly focused on real estate development in the Mumbai Metropolitan Region, which included clearing slum land and rehabilitating slum dwellers.

The main source of revenue of HDIL, for long, has been selling of development rights to other property developers, after developing the slum land. The company reported revenue of Rs 601.20 crore in FY19 and a net profit of Rs 96.19 crore.

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Delhi restaurant fire kills over 20 in Malviya Nagar, dozens rescued

A massive fire at a restaurant building in Delhi’s Malviya Nagar killed over 20 people and injured several others. Authorities have launched an investigation into the cause of the blaze.

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Malviya Nagar Hotel Fire

A devastating fire at a restaurant building in Delhi’s Malviya Nagar area claimed the lives of more than 20 people on Wednesday, triggering a large-scale rescue operation by emergency services. Authorities said dozens of people were trapped inside the multi-storey structure when the blaze broke out during the morning hours.

According to fire officials, an emergency call was received at around 9:45 am, following which multiple fire tenders and rescue teams were rushed to the spot. Firefighters battled thick smoke and flames while carrying out evacuation efforts from different parts of the building.

Rescue operation saves dozens

Officials said 37 people were rescued and taken to hospitals through emergency ambulance services. Several victims reportedly suffered injuries, while the death toll continued to be assessed as rescue and search operations progressed.

The building housed a restaurant on the ground floor, and preliminary information suggests the fire may have originated there. However, authorities have not yet confirmed the exact cause of the blaze.

Investigation underway

Witnesses described scenes of panic as smoke rapidly spread through the building. Some occupants reportedly jumped from upper floors in attempts to escape the flames while local residents assisted rescue efforts before emergency teams arrived.

Officials have launched an investigation to determine the cause of the fire and examine whether safety norms were being followed at the premises. The identities of several victims were still being verified at the time of reporting.

The incident is among the deadliest fire tragedies reported in the national capital in recent years and has once again raised concerns about fire safety compliance in commercial establishments.

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Annamalai resigns from BJP, signals launch of new political party in Tamil Nadu

Former Tamil Nadu BJP president K Annamalai has submitted his resignation to the party leadership in Delhi, with reports indicating that he is preparing to launch a new political outfit.

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K Annamalai

Former Tamil Nadu BJP president K. Annamalai has resigned from the Bharatiya Janata Party after meeting senior party leaders in New Delhi, marking a significant political development in the state. Reports indicate that he is now preparing to launch a new political party.

According to reports, Annamalai met BJP national president Nitin Nabin and the party’s national general secretary (organisation), B. L. Santhosh, in Delhi and formally submitted his resignation.

The move comes after months of speculation regarding his future within the BJP. Annamalai, a former IPS officer who joined the party in 2020, had emerged as one of the BJP’s most prominent faces in Tamil Nadu and played a key role in expanding the party’s visibility in the state.

Reports suggest that differences over the BJP’s alliance strategy in Tamil Nadu, particularly its association with the AIADMK, were among the factors behind his decision. Sources also indicated that Annamalai had concerns regarding the party’s electoral approach and his future role within the organisation.

Despite his resignation, BJP leaders reportedly attempted to persuade him to reconsider his decision. Discussions were held with the former state chief as the party leadership sought to address his concerns.

Reports further indicate that Annamalai is considering the launch of a new political party focused on Tamil Nadu politics. While details about the proposed outfit are yet to be officially announced, his next move is expected to attract considerable attention in the state’s political landscape.

The development comes at a time when Tamil Nadu politics is witnessing significant shifts, and Annamalai’s decision could have implications for future political alignments in the state.

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G Parameshwara likely to be deputy CM in DK Shivakumar-led Karnataka government

G Parameshwara is expected to be appointed Deputy Chief Minister as the Congress finalizes the cabinet for the incoming DK Shivakumar-led Karnataka government.

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Senior Congress leader and Karnataka Home Minister G Parameshwara is likely to be appointed Deputy Chief Minister in the new government led by DK Shivakumar, according to sources familiar with the ongoing discussions within the party. The move is seen as part of the Congress leadership’s efforts to ensure social and regional representation in the state’s new political setup.

The development comes as DK Shivakumar prepares to take oath as Karnataka’s Chief Minister following his election as the leader of the Congress Legislature Party after Siddaramaiah’s exit from the top post. The swearing-in ceremony is scheduled to take place in Bengaluru on June 3.

Parameshwara is one of the most prominent Dalit faces in Karnataka Congress and has held several important positions in the party and government over the years. Party leaders have reportedly been engaged in consultations over the composition of the new cabinet and the distribution of key positions ahead of the swearing-in ceremony.

The Congress leadership has been working to finalize ministerial appointments and balance representation among various communities and regions. Reports have also suggested that multiple deputy chief minister positions were under consideration as part of the broader cabinet formation exercise.

High-level meetings involving DK Shivakumar, Siddaramaiah and senior Congress leaders have taken place in New Delhi in recent days to finalize the structure of the new government. The discussions have focused on cabinet composition and organizational appointments ahead of the transition.

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