A day after the economic offences wing of Mumbai police detained Housing Development & Infrastructure (HDIL) promoters Rakesh and Sarang Wadhawan, the department arrested former Punjab and Maharashtra Cooperative (PMC) Bank managing director Joy Thomas.
Meanwhile, Rakesh and Sarang Wadhawan, were produced before a local court in Mumbai, which extended their custody till October 9.
The police had filed a first information report (FIR) on irregularities at PMC Bank, which was registered by the police on September 30.
The Enforcement Directorate (ED) has also registered a criminal case of money laundering against PMC Bank's former chairman S Waryam Singh, former MD Joy Thomas, HDIL's Wadhawans and all the other officials and entities named in the FIR.
Thomas is considered to be at the centre of the PMC Bank scam. He has already confessed that he misled the central bank for the last five years and created over 21,000 dubious accounts to hide loans given to the Mumbai-based realty firm HDIL with the help of some PMC Bank officials.
PMC Bank has given loans of Rs 6,500 crore, which accounts for 73 per cent of the bank’s loan book of Rs 8,880 crore.
On Thursday, EOW arrested Wadhawan duo and seized assets worth Rs 3500 crore. The special investigation team of the Mumbai police also freezed Thomas’ bank accounts, searched the residence of former PMC Bank chairman Waryam Singh and seized one of his demat accounts having investments of Rs 100 crore.
Police sources said they are still on the look-out for Singh.
The PMC Bank scam came into the limelight after a whistle-blower informed the Reserve Bank of India (RBI) to look into the books of the cooperative bank. Acting swiftly upon the complaintm, the RBI on September 23 placed PMC Bank under an administrator, suspended the management and placed curbs on deposit withdrawals.
Thomas in a five-page letter to the RBI dated September 21 confessed to the role of the top management in hiding the bank's non-performing assets and the actual exposure to HDIL, which lenders have taken to insolvency court.
In a clarification letter written to the exchanges, HDIL vice-chairman and managing director Sarang Wadhawan had said the loans taken from PMC Bank and other lenders were in the normal course of business after providing adequate security cover.
Meanwhile, Rakesh and Sarang Wadhawan, were produced before a local court in Mumbai, which extended their custody till October 9.
The police had filed a first information report (FIR) on irregularities at PMC Bank, which was registered by the police on September 30.
The Enforcement Directorate (ED) has also registered a criminal case of money laundering against PMC Bank's former chairman S Waryam Singh, former MD Joy Thomas, HDIL's Wadhawans and all the other officials and entities named in the FIR.
Thomas is considered to be at the centre of the PMC Bank scam. He has already confessed that he misled the central bank for the last five years and created over 21,000 dubious accounts to hide loans given to the Mumbai-based realty firm HDIL with the help of some PMC Bank officials.
PMC Bank has given loans of Rs 6,500 crore, which accounts for 73 per cent of the bank’s loan book of Rs 8,880 crore.
On Thursday, EOW arrested Wadhawan duo and seized assets worth Rs 3500 crore. The special investigation team of the Mumbai police also freezed Thomas’ bank accounts, searched the residence of former PMC Bank chairman Waryam Singh and seized one of his demat accounts having investments of Rs 100 crore.
Police sources said they are still on the look-out for Singh.
The PMC Bank scam came into the limelight after a whistle-blower informed the Reserve Bank of India (RBI) to look into the books of the cooperative bank. Acting swiftly upon the complaintm, the RBI on September 23 placed PMC Bank under an administrator, suspended the management and placed curbs on deposit withdrawals.
Thomas in a five-page letter to the RBI dated September 21 confessed to the role of the top management in hiding the bank's non-performing assets and the actual exposure to HDIL, which lenders have taken to insolvency court.
In a clarification letter written to the exchanges, HDIL vice-chairman and managing director Sarang Wadhawan had said the loans taken from PMC Bank and other lenders were in the normal course of business after providing adequate security cover.
No comments:
Post a Comment