New Delhi: Trouble mounted for Housing Development and Infrastructure Limited (HDIL) as the Economic Offences Wing arrested its directors Sarang Wadhawan and Rakesh Kumar Wadhawan in connection with the Rs 4,355-crore fraud at the Punjab and Maharashtra Cooperative (PMC) case on Thursday.

Apart from the arrest, their assets and properties worth Rs 35,000 crore have also been frozen by the authorities.

The arrests came days after the government issued a look-out circular against the two directors after preliminary findings allegedly revealed financial irregularities at HDIL.

On September 30th, Economic Offences Wing on had filed a first information report against the officials of Punjab & Maharashtra Cooperative Bank Ltd. and Housing Development & Infrastructure Ltd. and formed a special investigation team to probe the matter.

The bank’s former Chairman Waryam Singh, Managing Director Joy Thomas and other senior officials, were also named in the FIR.

On September 24, RBI had put the PMC bank under regulatory restrictions owing to some alleged irregularities. Customers were barred from withdrawing more than Rs 1,000 from their savings, current or other deposit accounts sparking panic and sending shock-waves across the city banking and business circles.

After the account holders of PMC bank protested against the RBI move, the bank raised the withdrawal limit to Rs 10,000 from an earlier cap of Rs 1,000.