Ex-director of PMC Bank got cash remittances from HDIL group: EOW

Investigating team looks at all transactions carried out by Arora in past few years

Surjit Singh Arora, former director of the Punjab and Maharashtra Co-operative (PMC) Bank, received benami remittances (money) in cash from the Housing Development Infrastructure Limited (HDIL), according to the economic offences wing (EOW) of the Mumbai police.

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The EOW, which is probing the ₹4,355-crore PMC Bank fraud case, said Arora, 65, was aware of the long business association of HDIL with the bank. HDIL group of companies and their promoters Rakesh and Sarang Wadhawan are accused of unlawfully availing loans from the bank. “We are trying to get more details. We are scrutinising all transactions carried out by Arora in the past few years,” said an EOW official. “Arora, an Antop Hill resident, allegedly abused his official position to purportedly allow irregularities in the bank and received crores of rupees from one of the HDIL companies,” EOW sources claimed.

During the time span when the crime occurred, Arora expanded his business and established a chain of hotels in Mumbai. “The police are trying to check if he has invested the proceeds of crime into his business,” an SIT officer said.

Another key accused in the case, ex-managing director Joy Thomas, had also named Arora in the probe. Arora, along with other director Daljit Singh Bal, cleared many loan proposals. At least 100 of them, including those of HDIL’s, turned into NPAs, causing huge wrongful loss to the bank.

After the Reserve Bank of India (RBI) imposed restrictions on the PMC Bank on September 23, Arora and other directors held a meeting in a Bandra hotel, police said.

Arora was produced in the court on Thursday, where the EOW sought extension of his custody. Arora has been remanded in judicial custody until November 5.

Meanwhile, SIT officials are looking for the other directors. “We are looking for Bal, Gurnam Singh Hothi and Omprakash Uppal, as most of them have gone underground,” said a senior EOW official.

The EOW has so far arrested HDIL’s directors Rakesh and Sarang Wadhawan, Thomas, Waryam Singh and Arora. The EOW has also provisionally attached properties worth ₹4,000 crore. The police have frozen 300 bank accounts linked to all accused and the companies. The EOW has also moved to the court sell properties of the Wadhawans to recover money from the PMC Bank and give depositors instant relief.