The Mumbai Police's Economic Offences Wing (EOW) that is probing the Punjab and Maharashtra Co-operative (PMC) Bank case have found out that most of the fictitious accounts created by the bank to hide the loans advanced towards the bankrupt realtor Housing Development and Infrastructure Limited (HDIL), belonged to dead account holders. Sources said that the fictitious accounts - over 21,000 - mentioned in the Advances Master Indent submitted to the RBI in March 2018 mostly belonged to dead account holders, while some belonged to people who had closed their accounts with the bank.
According to a report on India Today TV, the accounts were created within 45 days before the submission to RBI was made. This was done by the bank to camouflage the 44 accounts belonging to HDIL. The amounts mentioned in these accounts were lesser that what was borrowed by HDIL and its group companies.
The fictitious accounts were mere entries in the Advance Master Indent submitted to RBI in March 2018 and were not created in the Core Banking System (CBS).
Sources also told India Today TV that the scam has had significant damage on the reserves of the bank. The shortfall of funds could lead up to Rs 3,000 crore.
On Saturday, the EOW arrested PMC Bank chairman Waryam Singh in connection with the scam. On Friday, MD Joy Thomas was arrested. He has been sent to police custody till October 17. The promoters of realty firm HDIL, Rakesh Kumar Wadhawan and his son Sarang Wadhawan were arrested on Thursday. They will be in police custody in October 9. So far, all the accused in the EOW's FIR have been arrested.