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Nov 14, 2019-Thursday



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Thursday, Nov 14, 2019

‘Ex-directors Arora, Bal helped clear over 100 loans for HDIL’

mumbai Updated: Oct 23, 2019 00:15 IST
Vijay Kumar Yadav
Vijay Kumar Yadav

Former director of Punjab and Maharashtra Co-operative (PMC) Bank Surjit Singh Arora and at least one other director in the bank’s loan committee cleared many loans which later became NPAs (non-performing assets) for the bank, revealed the economic offences wing (EOW) that has been investigating the loan fraud.

“Of many loan proposals cleared by Arora, 100 of them turned into NPAs including those of Housing Development Infrastructure Limited’s (HDIL), causing huge wrongful loss to the bank. Arora with another former director Daljit Singh Bal were instrumental in recommending various loans. Bal is one of the key members of the loan committee,” said an officer part of the probe.

However Bal and Gurnam Singh Hothi, another former director, have written to the EOW, claiming their innocence. “I was not aware about the clandestine and fraudulent activities done by them [the main accused],” Bal stated in the letter submitted to the EOW.

He also mentioned that he and a relative have deposits in PMC Bank worth almost ₹8.13 crore.

Hothi in his letter, which HT has viewed, told the EOW that he has helped PMC Bank get big depositors in the past and that he himself is a victim of the fraud.

The police have issued a look-out circular (LOC) against Bal and 10 more former directors of PMC Bank: Surjit Singh Narang, Rajneet Singh, Jagdeesh Mukhey, Gurnam Singh Hothi, Trupti Bane, Parmeet Sodhi, Jaswinder Singh Banwait, Brij Bhishan Handa, Mukti Bavisi and Ompdakash Uppal.

“We are looking for other directors as most of them have gone underground. We will arrest those who are involved in the fraud,” said a senior EOW official. According to the EOW, notices to be present for questioning have been sent to the accused, but they have not responded. The EOW will also probe whether the accused engaged in illegal activities and if Arora invested any money obtained through any illegal manner into his businesses.