Published 19:11 IST, October 3rd 2019
PMC Bank Crisis: HDIL directors arrested by Mumbai Police's EOW wing
Economic Offences Wing (EOW) of the Mumbai Police have arrested HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan in connection with PMC Bank fraud
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In a major crackdown on Punjab and Maharashtra Cooperative (PMC) Bank crisis, Ecomic Offences Wing (EOW) of Mumbai Police, on Thursday have arrested Housing Development and Infrastructure Limited (HDIL) directors Sarang Whawan and Rakesh Kumar Whawan. Sources report that property worth Rs 3500 Crores have been frozen by police. Reacting to arrest, BJP leer Kirit Somaiya has hailed Mumbai police and stated that withing two days PMC Bank's previous chairman Waryam Singh and MD Joy Thomas will also be arrested. He ded that matter has been forwarded to Enforcement Directorate(ED) as a case of money laundering was involved.
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EOW registers FIR against PMC and HDIL directors
Earlier on Monday, EOW h registered an FIR against senior officials of PMC Bank and HDIL in connection with a fraud of over Rs 4,355 crores. Police stated that a special investigation team has been formed to probe into issue. According to police, PMC Bank officials gave loans to HDIL between year 2008 and August 2019 despite t paying previous loans. FIR has been registered on complaint given by Jasbir Singh Matta, who was authorized by RBI ministrator with Mumbai Police
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PMC mits HDIL main reason for crisis
Earlier last week, PMC h mitted that one large account-HDIL was sole reason for present crisis, as per PTI. bank's former managing director Joy Thomas h allayed fears stating all accounts were safe and fully-secured. He said bank has cash liquidity of around Rs 4,000 crore in form of SLR (statutory liquidity ratio) and CRR or cash reserve ratio. But, he mitted that problem arose because of under-reporting of NPAs from HDIL account.
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RBI extends limit
On September 26, Reserve Bank of India (RBI) hiked withdrawal limit to Rs 10,000 from Rs 1,000 for PMC's depositors, according to PTI. This development came two days after RBI took control of bank for six-months. It h also capped withdrawals at ₹1,000 per account and bank is t allowed to make any fresh loans for six months. This anuncement by Central bank caused chaos throughout financial capital, with panicked account holders crowding bank.
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18:59 IST, October 3rd 2019