ED raids 5 premises of Viva Group in Mumbai

Mumbai (Maharashtra) [India], January 22 : The Enforcement Directorate (ED) on Friday conducted searches at the five premises belonging to Viva Group and its associates.
The premises included a registered office of Viva Group in Virar, a residential premise of the concerned person of Viva Group in Virar, one associated office premise of Viva Group in Andheri, and two residential premises of two financial consultants of Viva Group in Juhu and Chembur respectively. During the search, Rs 73 lakh cash, incriminating digital and documentary evidence has been recovered.
ED initiated an investigation under the Prevention of Money Laundering Act, 2002 (PMLA) against Housing Development Infrastructures Limited (HDIL), Rakesh Kumar Wadhawan, Sarang Wadhawan, Waryam Singh and Joy Thomas, Chairman and Managing Director of PMC Bank Limited and others on the basis of FIR registered by Economic Offences wing of Mumbai Police under Sections 409, 420, 465, 466, 471 read with 120B of IPC, 1860 for causing wrongful loss prima facie to the tune of Rs 4,355 crore to PMC Bank and corresponding gain to themselves.
Several properties of Rakesh Kumar Wadhawan and Wadhawan family trust and others totally valued at Rs 293 crore were also attached and jewellery worth Rs 63 crores was seized earlier.
A prosecution complaint has been filed against Rakesh Kumar Wadhawan and others under PMLA.
The investigation also revealed that Wadhawans of HDIL in connivance with Viva Group have diverted more than Rs 160 Crore from HDIL to many companies/entities belonging to Viva Group in the garb of commission. The source of these funds from HDIL to Viva Group is apparently the illegal fund diversion from PMC Bank.
ED has also initiated an investigation in another case against Rakesh Wadhawan and Sarang Wadhawan, the promoters of HDIL, and others for siphoning off the loan of Rs 200 crore sanctioned by Yes Bank to one Mack Star Marketing Pvt. Ltd.
ED said that this loan was siphoned by Wadhawans by showing it for fictitious purposes. In the matter CBI (ACB), Mumbai had registered an FIR under Section 120 B, 409, 420 of IPC, 1860 and 13(2) r/w 13(1)(d) of PC Act 1988 against the above-mentioned entities.
During investigation under PMLA, it is revealed that Wadhawans illegally and fraudulently transferred two commercial properties of Mack Star in Kaledonia Building, Andheri East, Mumbai valued at Rs 34.36 crore to Viva Holding, a company of Viva Group.
For the transfer of the said two properties, two separate sale agreements dated 26.06.2017 were prepared wherein sale value for both the subject commercial properties were shown as Rs 34.36 crore in total.
In the said sale agreements, the purchase amount were shown to be paid vide 37 Cheques by Viva Holding to Mack Star Marketing Pvt. Ltd. against the purchase of the said properties. The investigation has revealed that these cheques were never en-cashed in the account of Mack Star and Viva Holding never made payments for the purchase of the said property to Mack Star. Wadhawans had illegally transferred these properties to Viva Group in violation of the article of association of Mackstar. Further, Viva Holding never showed these properties in its balance sheets.
Further investigation, in this case, is in progress.