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PMC Bank crisis: EOW arrests two auditors, to produce before court today

The auditors identified as Jayesh Sanghani and Ketan Lakdawala belong to an audit firm, which was hired by Punjab and Maharashtra Cooperative (PMC) Bank to conduct routine audits

twitter-logo BusinessToday.In   New Delhi     Last Updated: November 12, 2019  | 14:28 IST
PMC Bank crisis: EOW arrests two auditors, to be produced before court today
As of now, five accused, including HDIL promoters Rakesh and Sarang, and bank's top management, have been arrested in connection with PMC Bank case

The Economic Offences Wing (EOW) of the Mumbai Police, who is investigating the PMC Bank scam, on Monday reportedly arrested two auditors as a part of its investigation into Rs 4,355 crore bank scam. The auditors identified as Jayesh Sanghani and Ketan Lakdawala will be produced before a local court today, news agency ANI reported. As of now, five accused, including HDIL promoters Rakesh and Sarang, and bank's top management, have been arrested in connection with PMC Bank case.

"Jayesh Dhirajlal Sanghani and Ketan Pravinchand Lakdwala were called for investigation at office of the Economic Offences Wing, Mumbai, during the course of investigation their association with HDIL came into light and both couldn't provide convincing explanations regarding their alleged role as statutory auditors of PMC Bank, hence both were arrested for further investigation," the EOW statement said.

The report said the duo, who were arrested for deliberately overlooking irregularities in the bank, belong to an audit firm, which was hired by Punjab and Maharashtra Cooperative (PMC) Bank to conduct routine audits. The police are investigating if they received any kickbacks for overlooking the financial irregularities in the bank, the report said.

Also Read: PMC Bank scam: ED says HDIL promoters diverted loans worth Rs 160 crore to 3 Delhi hotels

"Both accused will be produced tomorrow for availing police custody before ACMM Holiday Court, Esplanade, Mumbai. Further investigation of accused persons is in progress," the statement read.

In September, the Reserve Bank of India (RBI) had restricted operations of the PMC Bank for six months. The apex bank superseded its board and appointed Jai Bhagwan Bhoria as the new administrator.

Also Read: PMC Bank: RBI increases withdrawal limit to Rs 50,000 from Rs 40,000

On November 5, the central bank had increased the withdrawal limit for bank customers to Rs 50,000 from Rs 40,000 earlier. With the above relaxation, more than 78 per cent of the depositors of the bank will be able to withdraw their entire account balance. The central bank had said it was closely monitoring the developments and would continue to take necessary steps in the interest of the depositors of the bank.

Last week, the apex bank had asked the EOW to release attached properties of the troubled bank so that they can be auctioned. The ED has attached movable and immovable assets of HDIL, its directors, promoters, PMC Bank officials and others in the case. The proceeds of the auction will be used to provide relief to the aggrieved account holders.

Edited by Chitranjan Kumar

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