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‘PMC Bank felt obligated to Wadhawans’

By HT Correspondent, Mumbai
PUBLISHED ON DEC 28, 2019 11:20 PM IST

Punjab and Maharashtra Co-operative (PMC) Bank continued to extend credit facilities to Housing Development and Infrastructure Limited (HDIL) group as the promoter of the realty group, Rakesh Wadhawan, had saved the bank during difficult times by infusing capital, revealed the charge sheet filed on Friday by the economic offences wing (EOW) of the Mumbai Police.

Wadhawan started banking with PMC Bank two years after its inception in 1984, through his family business of land development and construction.

The charge sheet also stated that in 2004, Wadhawans had deposited a big sum when the bank was facing acute cash crunch. Thereafter, Rakesh and his son Sarang through HDIL started banking with PMC Bank, taking up a large share in the bank’s entire transaction.

The agency claimed that Joy Thomas, one of the key accused in the case, also felt obligated towards Wadhawan.

“Thomas was working with PMC Bank from its inception. He had witnessed the instances of the bank being rescued by Wadhawan and his family members. Therefore he remained obligated to Wadhawan, which he repaid by intermittently sanctioning / disbursing credit facilities to HDIL group of companies from 2008 to 2019,” the charge sheet claimed.

It also stated that Wadhawan later inducted his childhood friend Waryam Singh into the bank board, who then went on to become its chairman.

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