Here’s how the scam unfolded
At the heart of the alleged scam is Guru Ashish Construction (GAC), a sister concern or subsidiary of HDIL – which is also facing a loan fraud case by the CBI. GAC directors were Rakesh Kumar Wadhawan, Sarang Wadhawan and Praveen Wadhawan.
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The HDIL was a real estate company that had taken a loan of Rs 6,700 crore from the PMC Cooperative Bank which ultimately led to the collapse of the bank – Rs 2700 crore was laundered by the HDIL.
A tripartite agreement was signed between Patra Chawl society MHADA (Maharashtra Housing and Area Development Authority) and Guru Ashish Construction Pvt Ltd. As per the agreement, the developer in this case GAC was to provide flats to 672 tenants and develop flats for MHADA, and thereafter remaining area was to be sold by the developer.
However, GAC mislead the MHADA and sold FSI (Floor Space Index) to 9 developers for Rs 901.79…
