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PMC Bank fraud case: Rajneet pushed for loan for HDIL firm, says EOW

By Vijay Kumar Yadav, Mumbai
PUBLISHED ON NOV 26, 2019 12:56 AM IST

The investigation by the economic offences wing (EOW) of the Mumbai Police into the 4,855-crore Punjab and Maharashtra Cooperative (PMC) Bank case has revealed that Rajneet Singh, one of the board of directors of the bank, had pushed for a loan to Sapphires Land Development Company, owned by the Housing and Development Infrastructure Limited group (HDIL).

A local magistrate court on Monday remanded Singh in judicial custody till December 3.

EOW officers had sought an extension of Singh’s police custody from the court, citing that he did not reveal his role in the fraud. The EOW also told the court that Singh had purposely shielded HDIL’s dues. The probe also revealed that many other directors on the bank’s board had connived with HDIL executives to commit the fraud.

Initial investigations suggest that many of the loans extended to the HDIL group of companies caused loss to the bank.

“Singh runs a hotel business. Several other directors of the bank are also independently engaged in their respective businesses and were associated with HDIL in one way or the other. Singh and some other directors had discussed about the loan facilities to be provided to Sapphires Land Development Company in the meetings. However, he feigned ignorance despite showing him the minutes of the meetings. As new facts were emerging in the investigation, we had asked the court for Singh’s police custody,” said an EOW officer, who is a part of the probe.

Meanwhile, the court also adjourned the hearing on EOW’s plea to auction the Wadhawans’ moveable assets to December 2.

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