A special court set up under the Prevention of Money Laundering Act (PMLA) on Monday remanded Dewan Housing Finance Ltd CMD Kapil Wadhawan in the Enforcement Directorate (ED) custody till January 29.
The court accepted the agency's arguments for his remand.
The agency alleged that the accused was fully aware of the transactions and payments made towards purchase of the three properties in Worli in central Mumbai allegedly owned by Iqbal Mirchi.
"Kapil Wadhawan, being chairman and managing director of Dewan Housing Finance Ltd (DHFL), had visited London along with a city-based real estate broker to meet Iqbal Mirchi in 2010. He has been instrumental in siphoning off huge amounts of money as part of the illegal deal between Mirchi and the Wadhawans," the ED said in its remand note.
"Kapil Wadhawan played a very crucial role in the nefarious transactions by way of money laundering. He diverted huge funds from DHFL to shell companies which was then transferred to Wadhawans-owned Sunblink Real Estate Pvt Ltd," the agency said.
According to the ED, a bank account was opened under the name of Mushraff Merchant using fake KYC documents, and funds worth Rs six crore was received in this account from Sunblink.
The agency claims that in 2010, the Wadhawans executed a deal with Iqbal Mirchi to purchase the three properties owned by Mirchi for a sum of Rs 225 crore.
"A sum of Rs 154 crore was paid by Sunblink to Iqbal Mirchi in Dubai through various companies owned by DHFL in Dubai and a sum of Rs 45.50 crore was paid by Sunblink through cheques to Mirchi's close aide in Mumbai, one Humayun Merchant and other shell companies," the remand note said.
The agency said the total proceeds of crime is around Rs 199.50 crore.
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