Published 20:04 IST, October 4th 2019

PMC Bank Crisis: Mumbai Police's EOW arrests bank's ex-MD Joy Thomas

Mumbai Police's Economic Offence Wing (EOW), on Friday, has arrested PMC bank's former Managing director Joy Thomas, a day after arresting HDIL directors

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Acting on Punjab and Maharashtra Cooperative (PMC) bank fraud case, Mumbai Police's Ecomic Offence Wing (EOW), on Friday, has arrested PMC bank's former Managing director Joy Thomas. Thomas was previously missing, as stated by Mumbai Police. He is being interrogated and furr investigation is underway. stated police. Earlier in day, Enforcement Directorate (ED) h filed an Enforcement Case Information Report (ECIR) in bank fraud, after taking cognizance of FIR filed by Mumbai Police's EOW. In FIR, ED has named PMC board members and HDIL (Housing Development and Infrastructure Limited) promoters as accused. ED officials searched six locations in Mumbai and joining areas in money-laundering case.

RE | PMC Bank crisis: ED files case against officials, carries out raids

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HDIL directors arrested

Earlier on Thursday, EOW arrested HDIL directors Sarang Whawan and Rakesh Kumar Whawan. Sources report that property worth Rs 3500 Crores have been frozen by police. Previously 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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RBI extends limit

On Thursday, Reserve Bank of India (RBI) hiked withdrawal limit to Rs 25,000 from Rs 10,000 for PMC's depositors, according to PTI. Previously on September 23, RBI h hiked withdrawal limit from Rs.1000 to Rs. 10,000. On September 21, 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.

RE | Mumbai Police registers FIR against officials of PMC Bank and HDIL

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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.

RE | PMC Bank Crisis: HDIL directors arrested by Mumbai Police's EOW wing

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19:41 IST, October 4th 2019