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PMC Bank scam: 3 more directors arrested in Rs 4,355 crore fraud; to be produced in court today

These suspects were held following an investigation into credit facilities provided by PMC Bank to now-bankrupt HDIL and its group companies

twitter-logo BusinessToday.In   New Delhi     Last Updated: December 4, 2019  | 12:23 IST
PMC Bank scam: 3 more directors arrested in Rs 4,355 crore fraud; to be produced in court today
ED has arrested 12 people in the case so far

The Mumbai Police's Economic Offences Wing (EOW) has arrested three directors of PMC Bank in its ongoing probe into the Rs 4,355-crore scam, taking the total number of arrested people in the case to 12. Those who have been held include Jagdish Mookhey, Mukti Bavisi and Trupti Bane. They were arrested following an investigation into credit facilities provided by PMC Bank to now-bankrupt Housing Development and Infrastructure Limited (HDIL) and its group companies.

ALSO READ: Infographic: How the PMC Bank scam unfolded

All three accused will be produced in the court today. They held major positions in the scam-hit bank. Mookhey was a director and a member of its audit committee since 2005. Bavisi was also a director and member of its loans and advances committee since 2011. Trupti Bane was a member of the loan recovery committee between 2010 and 2015, and of the loans and advances committee since 2015. In November, the police had arrested another director, Rajneet Singh, who is the son of former BJP MLA Sardar Tara Singh, in connection with the case.

Also read: PMC Bank customers may get money back; assets worth Rs 3,500 crore to be sold

As per allegations, HDIL promoters Rakesh Wadhawan and Sarang Wadhawan in connivance with PMC Bank Officials, including MD Joy Thomas and former chairman Waryam Singh and others, fraudulently availed several loans and defrauded PMC bank of over Rs 4,355 crore. They all have been arrested in the case. During its probe, ED had found several instances of siphoning off funds and had attached properties worth several hundred crores in the case.

Also read: PMC Bank crisis: Here's how the troubled lender became a stakeholder in NPCI

Meanwhile, the Reserve Bank last month told the Bombay High Court that senior officials of the scam-hit PMC Bank used special codes to hide hundreds of dummy loan accounts of HDIL. The bank's total loan exposure with HDIL was at 73 per cent. In an affidavit, the RBI also said of the 1,800 employees of the bank, only about 25 could access the loan accounts of HDIL and its group entities.

Also read: PMC Bank crisis: Director claims she is a victim too, deposited Rs 10 lakh recently

Edited by Manoj Sharma with agency inputs

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