Wadhawan brothers swindled Indian Bank, declared defaulters

MUMBAI: The Chennai-based public sector Indian Bank has admitted to a major loan default of Rs 279 crore by the realty group, Housing Development & Infrastructure Ltd (HDIL) Mumbai, and its suspended Directors - Rakesh Kumar Wadhawan and son Sarang Wadhawan.

HIDL and the Wadhawans are already accused in the sensational Punjab & Maharashtra Cooperative Bank (PMC Bank) scam that blew up in the Indian banking sector three years ago in September 2019.

The Indian Bank has declared the Wadhawan father-son duo as ‘Wilful Defaulters’ for the sanctioned loan of Rs 197.60 crore, which has now grown to 278.80 crore, besides interest.

It has warned the people against entering into any deals with the properties of the HDIL and the Wadhawans and guarantors as a huge sum is recoverable from them.

There was no response from the Indian Bank’s top officials on the issue.

The Indian Bank’s admission has again brought the PMC Bank scam of around Rs 6,500 crore to the fore with prominent players including the Wadhawans and many others.

The Bank Depositors Protection & Welfare Society (BDPWS) Secretary and banking expert Vishwas Utagi said it is “a matter of serious concern that the Wadhawans are now labelled as ‘Wilful Defaulters’ by a nationalised bank”.

“In all such bank scams, the crime is known, the criminals are also known, but what about the recoveries? During the so-called efforts to discipline the errant players, the NCLT allows the banks to take upto 75-80 per cent ‘hair-cuts’, leading to barely 20-25 per cent recoveries. Ultimately, it’s only the public which suffers,” Utagi said sharply.