PMC scam: Court gives nod to sell jets, yacht of Wadhawans

A court here has allowed the RBI- appointed administrator for PMC Bank to sell two airplanes and a yacht belonging to HDIL group promoters Rakesh Wadhawan and his son Sarang, the prime accused in the Rs 4,355-crore scam at the cooperative lender.

The administrator had moved the metropolitan court here, seeking its direction to sell movable assets attached by probe agencies in connection with the scam at Punjab & Maharashtra Co-operative Bank (PMC Bank).

According to the Mumbai Police's Economic Offences Wing (EOW), the PMC Bank management, in cahoots with the Wadhawans, concealed from the banking regulators' scrutiny huge loan defaults by HDIL group firms.

Over 70 per cent of the bank's advances went to HDIL group, which led to a huge crisis when the realty group defaulted on repayment, the EOW had said.

The RBI had on September 24 imposed operational curbs on PMC Bank and appointed an administrator following detection of alleged financial irregularities.