HDIL Promoters and Raj Shroff Named in ED Chargesheet Over Kaledonia Case

The Enforcement Directorate (ED) has filed a second supplementary chargesheet in the HDIL money laundering case, naming HDIL promoters Rakesh and Sarang Wadhawan, businessman Raj Shroff, and two of his firms. The case involves the alleged fraudulent transfer of 30 office units at Kaledonia, a commercial property in Andheri East, Mumbai, owned by Mack Star Marketing Private Limited.

According to the chargesheet, Mack Star incurred a loss of ₹345.48 crore due to unauthorized office unit sales through 12 transactions. Two of these units were sold to Jindal Combines Pvt Ltd and Orlando Trading Pvt Ltd, owned by Shroff, allegedly causing a ₹16.09 crore loss. The ED noted price discrepancies between similar office units sold in 2014 and 2016, with one being undervalued by ₹6.25 crore. Shroff’s explanation for the price difference was considered vague.

The chargesheet states that these transactions occurred without the consent or knowledge of Mack Star’s majority shareholder, Ocean Deity Investment Holdings Limited (ODIL), a Mauritius-based entity linked to the DE Shaw Group. The ED claims that the sale of these office units was conducted without proper authorization, leading to financial losses for Mack Star.

Dispute Over Mack Star’s Ownership and Control

Mack Star was formed as a joint venture with HDIL and acquired ₹900 crore worth of development rights for Kaledonia. The DE Shaw Group, through Ocean Deity Investment Holdings Limited (ODIL), invested ₹1,000 crore in Mack Star in 2008. The building was completed in 2011, but ED alleges that several units were sold without ODIL’s knowledge or consent. The Wadhawans allegedly manipulated Mack Star’s management, using dummy directors to execute transactions.

The chargesheet states that Rakesh Wadhawan failed to provide clear answers regarding the sale and transfer of these office units. The ED alleges that the Wadhawans orchestrated financial transactions that benefited HDIL while disregarding the interests of Mack Star’s majority shareholder. According to the investigation, control over Mack Star’s operations was maintained through directors who acted on behalf of the Wadhawans.

Legal Investigations and Proceedings

The CBI initiated an investigation in September 2020, leading the ED to begin its probe in October 2020. The FIR claimed that the Wadhawans secured illegal loans of ₹200 crore from Yes Bank, using Mack Star’s properties as collateral. Additionally, some properties were allegedly transferred to HDIL’s creditors without proper authorization.

In February 2023, Mumbai Police registered another cheating case against the Wadhawans, later transferred to the Economic Offences Wing (EOW). The case, filed by Mack Star’s Managing Director Sumit Saha, alleged that 23 office units at Kaledonia were illegally transferred, resulting in an ₹88.47 crore loss. However, the EOW submitted a closure report, stating that the issue was civil, not criminal.

Following the EOW’s closure report, Sumit Saha wrote to the CBI and the Central Vigilance Commission (CVC) on February 25, 2025, opposing the closure and questioning the decision. The ED is now reviewing the report before determining further legal action.