Mumbai Police Arrests HDIL Directors in PMC Bank Case

New Delhi, October 4, 2019:

Mumbai Police have arrested two directors of Housing Development and Infrastructure Ltd (HDIL) that set off the crisis at Punjab Maharashtra Co-operative (PMC) Bank by defaulting on loans worth nearly Rs. 6,500 Crore.

The Economic Offences Wing of the Mumbai Police have arrested the two Senior Executives, Rakesh Wadhawan and Sarang Wadhawan. They have charged the two brothers with money-laundering by the Enforcement Directorate (ED).

The Wadhwans were also named in the recently filed police complaint, which accused the PMC bank’s management of concealing non-performing assets (NPAs) and disbursing loans to HDIL leading to the 4,300 Crore loss.

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It may be mentioned that earlier this week, a police complaint was filed under the Prevention of Money Laundering Act, alleging that the PMC officials had misled the apex bank, Reserve Bank of India (RBI) for more than a decade.

Besides Wadhawan brothers, the complaint had named PMC Bank’s the then Chairman Waryam Singh and Managing Director Joy Thomas, along with other bank officials. They have been charged with criminal breach of trust, forgery and falsification of records.

The 21,000 fictitious loan accounts were not entered into the bank’s core banking system, one of the key factors behind the Rs. 14,000-crore at the 2018 Punjab National Bank scam.

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The Wadhwan borthers will be produced in Court today.

It may be mentioned here that the RBI on Thursday raised withdrawal limit for account holders of the PMC Bank from Rs. 10,000 to Rs. 25,000 ahead on account of festive occasion.

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