New Delhi: In the latest development, the Economic Offence Wing of Mumbai Police on Friday arrested Joy Thomas, suspended Managing Director of crisis-hit Punjab and Maharashtra (PMC) Bank, in an alleged Rs 6,500 crore fraud case.
The development comes a day after the Economic Offence Wing of Mumbai Police arrested Housing Development Infrastructure Limited (HDIL) Directors Sarang Wadhawan and Rakesh Wadhwan. They were arrested after found accused of loan default in connection with the PMC Bank case. Both the directors were called for interrogation and were later arrested when they failed to cooperate in the investigation. “We have arrested the two accused and their interrogation is on,” EOW chief Rajvardhan Sinha had said.
Earlier in the day, the Enforcement Directorate registered a money laundering case against the board members of the PMC Bank and the promoters of crisis-hit real estate firm Housing Development and Infrastructure Ltd (HDIL) in connection with multi-crore loan default case.
The probe agency raided six locations in Mumbai and adjoining areas linked to the former chairman of the PMC bank and promoters of HDIL after a criminal complaint was filed under the Prevention of Money Laundering Act (PMLA ) by the central agency. ED sources said that the raids are aimed at gathering additional evidence.
Ten of 44 accounts which led to PMC Bank falling in debt were linked to HDIL. Personal accounts of Sarang and Wadhwan were among these ten accounts.
On September 30, the EOW of Mumbai Police had registered an FIR against senior officials of HDIL and PMC bank in connection with a fraud of over Rs 4,355 crores.
“EOW has formed a special investigation team for the probe. The FIR has been registered on the complaint given by one Jasbir Singh Matta,” police said in a press note. The FIR was registered under Sections 409 (criminal breach of trust), 420 (cheating), 465 (forgery), 466 (forgery of record of court or public register), 471 (using a forged document as genuine) and 120B (criminal conspiracy).
Earlier, Joy Thomas had admitted that the bank did not report the financial exposure to the Reserve Bank of India (RBI) for over six years. Notably, the RBI had, on October 3, increased the withdrawal limit from Rs 10,000 to Rs 25,000 after several bank account holders protested against the bank’s move.
(With inputs from ANI)