Arrested PMC Bank Auditors to be produced in court on November 12

Ecomic Offence Wing (EOW) of Mumbai Police will produce two auditors before a local court on Tuesday. Both arrested auditors have been accused of purposely overlooking irregularities in Punjab and Maharashtra Cooperative (PMC) Bank. two auditors named, Jayesh Sanghani and Ketan Lakdawala were arrested by Mumbai Police during investigation by police into Rs 4,355 crore PMC bank scam.

auditors were part of an audit firm that used to carry out routine audits for bank. cops are also looking into any possibilities of auditing firm receiving any commission from bank to overlook irregularities.

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Earlier in September this year, Reserve Bank of India h put restrictions on activities of PMC bank for 6 months. RBI h also asked bank to grant or renew any loans or vances, make investments or incur any liability, including borrowing of funds and acceptance of fresh deposits after bank's scam, was exposed.  police have also arrested promoters of Housing Development and Infrastructure Limited (HDIL) and many PMC bank officials in connection with scam.

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What is PMC Bank Scam?

On September 21, RBI took control of bank for six-months. It h also capped withdrawals at ₹1,000 per account and bank was t allowed to make any fresh loans for six months. withdrawal limit has been increased to Rs. 40,000 as of Tuesday. After takeover, PMC Bank, which has Rs.11,500 crore deposited bank and has 137 branches, h mitted that one large account-HDIL was sole reason for present crisis, as per PTI. Following this, HDIL directors Sarang Whawan and Rakesh Kumar Whawan who h been arrested in connection with a fraud of over Rs 4,355 crores, have been sent to custody. According to police, PMC Bank officials gave loans to HDIL between year 2008 and August 2019, despite HDIL t repaying previous loans. Whawans along with Waryam Singh - all HDIL promoters - and PMC bank's ex-chair Joy Thomas are being investigated. 

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(With inputs from ANI)