Former managing director of Punjab & Maharashtra Co-operative Bank, Joy Thomas, has been sent to 14 days of judicial custody by Mumbai's Esplanade court. Thomas, one of the accused named in the FIR in the Rs 4,355-crore PMC Bank scam, was arrested by the Economic Offences Wing (EOW) of Mumbai Police on October 4.
The police had filed an FIR against Thomas, after a complaint by an RBI-appointed administrator of PMC Bank, for misrepresenting the bank's loan books and not revealing the bad loans of bankrupt Housing Development Infrastructure Ltd. Former PMC Bank chairman Waryam Singh was also arrested in the case.
As per information, PMC bank officials had created 44 hidden accounts with fake credentials to help HDIL. Loans given to HDIL later turned into NPAs (non-performing assets), leading to its bankruptcy and PMC's exposure of thousands of crores of rupees.
Joy Thomas had earlier confessed that the bank had been associated with debt-laden HDIL since 1989. The bank's exposure to Housing Development and Infrastructure Limited is over Rs 6,500 crore, which is four times the regulatory cap, or 73 per cent of its entire assets of Rs 8,880 crore.
The Mumbai police have already arrested HDIL promoters Rakesh Wadhawan and his son Sarang Wadhawan in the PMC Bank scam. Rakesh is the executive chairman of HDIL, whereas Sarang is the managing director of the company. The agency also attached their several properties worth over Rs 3,800 crore.
The EOW had earlier said that Thomas purchased 9 flats and a shop in Kondwa, Pune since 2012. These purchases were made around the same time when the HDIL promoters started their rigmarole of non-payment of loans and kept borrowing additional amounts from PMC Bank. The EOW is looking at the source of Thomas' income that enabled him to buy these properties.
Thomas had married his assistant who became his second wife after converting to Islam. His name after the conversion is said to be Junaid Khan. The properties bought in Pune are mostly in the name of Junaid Khan and his wife. Thomas' first wife had filed for a divorce, which is in the final stages.