HDIL promoters, bizman Raj Shroff amongst 26 charge-sheeted in Kaledonia probe
MUMBAI: The Enforcement Directorate (ED) has submitted a second supplementary chargesheet in opposition to 26 people or entities within the Housing Improvement Infrastructure Restricted (HDIL) cash laundering investigation referring to the alleged fraudulent switch of 30-odd workplace items at Andheri East’s enterprise park, Kaledonia, belonging to Mack Star Advertising and marketing Non-public Restricted. Among the many people named within the cost sheet are HDIL promoters Rakesh Wadhawan and his son Sarang, and businessman Raj Shroff, son-in-law of former Maharashtra chief minister Sushilkumar Shinde, and his two corporations.
Mack Star allegedly suffered a “wrongful loss” of round ₹345.48 crore on account of the irregular sale-transfer of the properties to a set of 12 buy transactions, in response to the cost sheet lately submitted to a particular court docket.
The cost sheet attracts consideration to 2 workplace items in Kaledonia have been bought or transferred to Jindal Combines Pvt Ltd and Orlando Buying and selling Pvt Ltd, each owned by Shroff, which allegedly resulted in a lack of ₹16.09 crore to Mack Star, in response to the cost sheet.
The cost sheet notes the distinction within the sale settlement worth between the 2 items, in 2014 and 2016, and states that the distinction exhibits that the one of many items was undervalued to the tune of ₹6.25 crore regardless that each properties have been of virtually the identical dimension.
Shroff, in his assertion recorded by the ED, tried to justify the distinction however his rationalization “appeared very imprecise and unacceptable,” in response to the cost sheet.
Additionally, the sale had allegedly taken place with out the consent or data of Mack Star’s majority shareholder, the Mauritius-based Ocean Deity Funding Holdings Restricted (ODIL) / DE Shaw Group.
As a part of a three way partnership with HDIL, Mack Star had constructed a free-sale industrial constructing referred to as Kaledonia, by buying improvement rights for ₹900 crore from companion HDIL. Funds of ₹100 crore have been used for completion of the constructing’s building. DE Shaw Group had invested round ₹1,000 crore in Mack Star in March 2008. The Kaledonia constructing was accomplished in 2011.
It was alleged that in 2011, a couple of workplace items in Kaledonia had been bought with out prior notification to ODIL. This was adopted by a collection of alleged irregularities dedicated by HDIL promoters and administrators, who continued to promote workplace items by misusing the administration of Mack Star.
The cost sheet said that HDIL promoter Rakesh Wadhawan didn’t reply questions referring to the sale or switch of sure Kaledonia workplace items, and the adjustment of dues owed by the HDIL Group with the respective purchasers.
It went on to state that the Wadhawans had perpetrated the monetary fraud with the assistance of the HDIL Group’s administrators on the board of Mack Star, who have been solely “dummy administrators”, in order that the agency’s affairs might be managed by them.
The ED’s investigation into the HDIL-Mack Star case started in October 2020, primarily based on a CBI First Info Report of September 2020, the place it was alleged that the Wadhawans had defrauded Mack Star by acquiring unlawful loans of ₹200 crore from a personal financial institution, Sure Financial institution, in Mack Star’s identify by mortgaging its properties.
The Wadhawans had additionally allegedly illegally transferred sure Mack Star properties to collectors of HDIL. The ED due to this fact connected a number of properties at Kaledonia, together with the workplace items bought by Orlando Buying and selling and Jindal Combines.
The ED later included in its investigation a February 2023 dishonest case in opposition to the Wadhawans registered with the native police. The probe was taken over by the Financial Offences Wing (EOW), on the bottom that the case was an extension of a single, bigger conspiracy as mirrored within the CBI case.
The complainant was the managing director of Mack Star Advertising and marketing Non-public Restricted, Sumit Saha, who had mentioned in his assertion that 23 Kaledonia workplace items had allegedly been illegally bought /transferred by the Wadhawans to their associates for private positive aspects. The Mumbai police FIR had alleged that the Wadhawans had cheated Mack Star of ₹88.47 crore.
Saha, in the meantime, on February 25, 2025 wrote to the CBI and the Central Vigilance Fee (CVC), protesting the EOW’s submission of a “closure report” in its case probe as reported by HT on Friday. The EOW’s closure report had said that the battle between the 2 companions of the agency was a civil one, ruling out any fraudulent conduct on the a part of the Wadhawans within the allocation of sure workplace items in Kaledonia constructing.
The ED will research the EOW’s closure report back to resolve its future plan of action.
