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Last Updated : Oct 09, 2019 01:28 PM IST | Source: Moneycontrol.com

HDIL promoter, former PMC Bank chairman ran a horse-breeding firm: Report

HDIL promoter Rakesh Wadhawan and former PMC Bank chairman Waryam Singh had set up Wadhawan Livestock to "import, export, breed horses for racing".

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(Representative Image)
(Representative Image)

HDIL promoter Rakesh Wadhawan and former PMC Bank chairman Waryam Singh, arrested for alleged involvement in fraud, had together started a firm that breeds racehorses.

Wadhawan, Singh, and Ashok Kumar Gupta, a former independent director at HDIL, had established Wadhawan Livestock in 2007 to "import, export, breed horses for racing" The Indian Express reports.

As of March 2018, Wadhawan owns 99.2 percent of the company, while Singh owns 0.4 percent, the publication said citing Wadhawan Livestock's annual report.

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Both individuals have been arrested by the Economic Offences Wing (EOW) of the Mumbai police for their alleged involvement in the Rs 4,335.46 crore fraud at Punjab and Maharashtra Co-operative (PMC) Bank.

Also read: PMC crisis | The buck stops with the management, not auditor

The lender has exposure of Rs 6,500 crore to Housing Development and Infrastructure Ltd (HDIL), suspended managing director Joy Thomas recently said.

Singh was a director on HDIL’s board for 10 years before joining PMC Bank as Chairman in 2015.

The financial troubles at HDIL appear to have hit Wadhawan Livestock as well. The company has not bought horses since April 2016, The Indian Express reports.

The firm is also reporting losses, posting a loss of Rs 30.32 crore in 2017-18, the publication said citing the annual report.

Wadhawan’s entry into the horse racing business may have been aimed at gaining favour with the Royal Western India Turf Club (RWITC), according to a Mumbai Mirror report. Wadhawan planned to develop a commercial venture on a portion of the Mahalaxmi Race Course in Mumbai, which is run by the RWITC.

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First Published on Oct 9, 2019 01:22 pm

tags #PMC Bank

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