PMC scam: HDIL owes Rs 2,815 crore interest on bank loans

MUMBAI: Probe into PMC Bank loan fraud case has revealed that HDIL’s dues to the bank include Rs 2,260 crore of principal and an additional Rs 2,815 by way of accumulated interest on it.


Rakesh and Sarang Wadhawan, the father-son duo who are directors of HDIL, are currently being questioned by the police.

Joy Thomas, former managing director of the bank accused of sanctioning loans to the Wadhawans and their companies, told the police the accused had repaid the bank Rs 500 crore in 2009.

“However, they did not repay Rs 4,355 crore that includes the principal and interest amount,” said an officer from the economic offences wing (EOW), the probe agency.

Thomas told the police since the bank had fixed an interest rate of 18-25% per annum on the loan, he was hopeful the bank would do good business. “However, the Wadhawans did not repay it,” Thomas told his interrogators.

He said during 2009 and 2010, the HDIL suggested that PMC Bank buy a company, Navlon Pvt Ltd, for Rs 169 crore, and they would later buy it from the bank. Thomas said the Wadhawans lured the bank saying the company machinery was worth Rs 200 crore and it would earn a profit from the sale. PMC Bank bought the company and the Wadhawans promised to buy it from the bank for Rs 180 crore, for which it sought a loan. Later, the bank learnt the company was with the liquidator as it owed loans to five other banks.

Among the eight companies named in the FIR, the first is HDIL. Investigators have also found documents that show PMC Bank’s former chairman Waryam Singh was one of the directors in one Prithvi Realtors and Hotels Pvt Ltd during 2005-2009.