New Delhi: Former managing director of Punjab and Maharashtra Cooperative Bank (PMC), Joy Thomas, was sent to police custody till October 17 by Mumbai’s Esplanade Court in connection with the alleged Rs 6500 crore scam at the bank. The court, however, allowed home-cooked food and medicine to be provided to Thomas inside jail.
Thomas was arrested yesterday by the Economic Offences Wing (EOW) of Mumbai Police in connection with the multi-crore scam. Besides, the Enforcement Directorate had also conducted raids at six locations in and around Mumbai after taking cognisance of the FIR registered by the EOW. ED sources had said that the raids were aimed at gathering additional evidence.
On Thursday, the EOW had arrested chairman and managing director of Housing Development and Infrastructure Ltd (HDIL) Rakesh Wadhawan and his son Sarang in the case. A court had sent them in police custody till October 9.
The PMC bank, which has 137 branches and over Rs 11,000 crore in deposits, was put under restrictions last week after the RBI discovered financial irregularities. According to sources, overall exposure of the bank to the financially stressed HDIL group is around Rs 6,500 crore or over 73 per cent of its advances, and all of it is not being serviced.
The Reserve Bank said on Friday that there was no reason to panic about the overall banking sector. RBI governor Shaktikanta Das said the entire banking system is sound and stable. However, in the wake of the crisis at PMC Bank, the RBI is reviewing the regulatory framework for cooperative banks, he added.
(With agency inputs)