In a fresh turn of developments, former Managing director of Punjab and Maharashtra Co-operative Bank (PMC) Joy Thomas has been sent to judicial custody for 14 days by Mumbai's Esplanade court for his alleged involvement in the scam. The court also granted Mumbai Police’s economic offences wing (EOW) custody of former director of PMC Bank, Surjit Singh Arora. Arora was arrested by the EOW on Wednesday after being summoned by the investigating agency for questioning in connection with the alleged Rs 4,355 crore scam at the PMC Bank.
According to Hindustan Times, as part of its investigation into the Rs 4,355-crore fraud, the EOW has frozen close to 300 bank accounts. These accounts are linked to Housing Development Infrastructure Limited (HDIL); the eight companies from the HDIL group that are named in the first information report filed on September 30; and 34 other companies linked to HDIL that also received loans.
Bank accounts of HDIL directors Rakesh Kumar and Sarang Wadhawan have also been frozen along with those of Thomas and former chairperson of PMC Bank, Waryam Singh. An officer part of the probe told the Hindustan Times, “Many of these bank accounts are suspected to have been used to route money for HDIL.”
Thomas has told the EOW that he had not declared the loans to HDIL as non-performing assets because he feared this would damage PMC Bank’s reputation. The probe has revealed that Thomas allegedly threatened other bank employees to ensure irregularities at PMC Bank were kept under wraps, reported Hindustan Times.
Last month, the RBI restricted the activities of the PMC Bank for six months and asked it to not grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits.
The Enforcement Directorate (ED) has seized and identified movable and immovable assets worth more than Rs 3,830 crore owned by Housing Development and Infrastructure Limited (HDIL) in connection with the case. As many as two PMC Bank customers died within 24 hours, including one Fattomal Punjabi and a 51-year-old former employee of Jet Airways named Sanjay Gulati.
