The Enforcement Directorate (ED) has filed a supplementary chargesheet against former Maharashtra Chief Minister Sushil Kumar Shinde’s son-in-law, Raj Shroff, Housing Development Infrastructure Limited (HDIL) promoter Rakesh Wadhawan, his son Sarang, and 26 others in an alleged money laundering case involving Mack Star Marketing Pvt Ltd’s commercial property in Andheri’s Kaledonia building.
The prosecution’s supplementary chargesheet, filed in the special PMLA court, highlighted discrepancies in the sale agreement values of two units in 2014 and 2016. It stated that one of the units was undervalued by ₹6.25 crore, despite both properties being of nearly the same size.
The ED probe revealed alleged irregularities in the transfer of two office units in Kaledonia to Raj Shroff-owned Jindal Combines Pvt Ltd and Orlando Trading Pvt Ltd, resulting in a loss of ₹16.09 crore to Mack Star.
The Wadhawans allegedly transferred certain Mack Star properties to HDIL creditors, which were later attached by the ED. This included the office units purchased by Orlando Trading and Jindal Combines.
Last week, the Mumbai Police Economic Offences Wing (EOW) filed a closure report in the alleged fraudulent sale of the premises, stating that it was a civil dispute and that no fraudulent transaction had taken place.
Mack Star Marketing Private Limited’s Managing Director, Sumit Saha, opposed the EOW’s submission of a “closure report” regarding the alleged illegal sale or transfer of 23 Kaledonia office units by the Wadhawans for personal gain. Last week, he filed a complaint with the CBI and the Central Vigilance Commission (CVC) against the closure report.
The EOW’s report stated that the conflict between the two partners of the firm was a civil dispute, ruling out any fraudulent conduct by the Wadhawans in allocating certain office units in the Kaledonia building.
Mack Star had constructed the free-sale commercial building Kaledonia in a joint venture, purchasing development rights for ₹900 crore from its partner, HDIL, with DE Shaw Group investing ₹1,000 crore.
The HDIL-Mack Star case was taken over by the ED in October 2020, based on a CBI First Information Report (FIR) filed in September 2020. The FIR alleged that the Wadhawans had defrauded Mack Star by obtaining illegal loans worth ₹200 crore from Yes Bank by mortgaging Mack Star properties.
The Kaledonia building was completed in 2011, and several office units were allegedly sold without prior notification to the investor, DE Shaw. A series of irregularities were reportedly committed by HDIL promoters and directors to sell office units while misusing Mack Star’s management.
Mack Star has alleged a “wrongful loss” of ₹345.48 crore due to the fraudulent transfer of over 30 office units at its Andheri East business park properties by HDIL and other accused.
Last week, the Mumbai Police EOW, which had initially registered an FIR alleging that the Wadhawans had cheated Mack Star of ₹88.47 crore, filed a closure report, again stating that the matter was civil in nature and did not involve fraudulent transactions.
According to the prosecution complaint, the irregular sale allegedly took place without the consent or knowledge of Mauritius-based Ocean Deity Investment Holdings Limited (ODIL)/DE Shaw Group, Mack Star’s majority shareholder.
The chargesheet includes a statement from Raj Shroff, recorded by the ED, justifying the price discrepancy, which the agency found “vague and unacceptable” during the investigation.
The chargesheet further states that the Wadhawans orchestrated the financial fraud with the assistance of HDIL Group’s directors on the Mack Star board, who were allegedly “dummy directors” used to maintain control over the firm’s affairs.
The ED has also alleged that HDIL promoter Rakesh Wadhawan failed to answer questions regarding the sale or transfer of certain Kaledonia office units and the adjustment of HDIL Group’s dues with the respective purchasers.
