Mumbai: The Enforcement Directorate (ED) is investigating HDIL promoters Rakesh and Sarang Wadhawan in a money laundering case linked to Mack Star Marketing Pvt Ltd.

About The Case

The probe has revealed that independent directors appointed by HDIL in Mack Star were mere figureheads acting on the Wadhawans’ instructions. According to the ED’s Prosecution Complaint (PC), Waryam Singh, a long-time Wadhawan associate, served as a director in multiple firms, including Mack Star. Similarly, Venkatavarathan Iyengar and Lakhminder Dayal Singh, both linked to HDIL, held directorial positions but allegedly had no real decision-making power.

These individuals signed fraudulent board resolutions and sale agreements while the Wadhawans controlled Mack Star’s operations, including unauthorized property sales in Mumbai’s Kaledonia Building. Investigators suspect that proceeds from these sales were diverted to HDIL and its entities.

Evidence shows that Mack Star’s properties in Kaledonia were fraudulently transferred, with dummy directors admitting they acted under duress. One such deal involved the sale of Office Units OS-801B and 904 to Skyway RMC Plants Pvt Ltd, owned by Kelvin and Rashmeet Singh Kohli, longtime HDIL suppliers. In 2017, HDIL owed them Rs 32 crore, which the Wadhawans allegedly settled by illicitly transferring properties worth Rs 27.34 crore for just Rs 1 lakh.

Similarly, in 2014, the Wadhawans allegedly transferred Unit 201 in Kaledonia, worth Rs 21.50 crore, to Vascon Engineers Ltd (VEL) to settle outstanding dues. An MoU was signed to legalize the transaction, but investigations revealed VEL neither completed the agreed project nor made payments to Mack Star. Another questionable deal involved Office Unit No. 4-B, transferred to FSD Properties Pvt Ltd to settle Rs 7.67 crore in dues for steel supplies.

Mack Star received only Rs 12.86 lakh despite the property’s Rs 7.79 crore valuation. Further, the entire 7th floor of Kaledonia, originally owned by Mack Star, was sold to Vikram Homes Pvt Ltd for just Rs 13 crore—far below its Rs 40.37 crore value. The amount was never paid to Mack Star but diverted to HDIL.