₹4,355-cr PMC Bank fraud: EOW arrests two auditors

The Economic Offences Wing (EOW) of the Mumbai Police arrested two auditors in connection with the ₹4,355-crore Punjab and Maharashtra Co-operative (PMC) Bank fraud

The Economic Offences Wing (EOW) of the Mumbai Police arrested two auditors in connection with the ₹4,355-crore Punjab and Maharashtra Co-operative (PMC) Bank fraud case. The arrested will be produced in the court on Tuesday.

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Rajvardhan Sinha, joint commissioner of police, EOW, confirmed the development.

Jayesh Sangani, 61, of Ashok Jayesh and Associates and Ketan Lakdawala of Lakdawala and Associates, both chartered accountants, were arrested from their respective offices in Borivli by two EOW teams on Monday.

“Both had carried out the audit of PMC Bank for two financial years, and knowingly and deliberately overlooked the massive irregularities at the bank’s functioning. This emerged during the probe,” said the EOW.

Investigators, who did not wish to be named, suspect the auditors received ₹40-₹60 lakh from the accused in the case to overlook fraudulent banking practices linked to the bank’s biggest client, Housing Development Infrastructure Limited (HDIL).

“We will ask them on whose instructions they overlooked the irregularities and how they did it,” said an EOW officer, on condition of anonymity.

There is one more person who had done auditing for the bank. “He is also likely to be arrested,” the officer said.

With the fresh arrests, the total number of arrested persons in the case now stands at seven.

Meanwhile, nearly 30 PMC Bank depositors on Monday met Mumbai’s commissioner of police, Sanjay Barve, to get updates on the progress of the police investigation.