PMC Bank fraud: Ex-MD may face more charges for tampering with the records

Former managing director of Punjab and Maharashtra Co-operative (PMC) Bank Joy Thomas, a key accused in the ₹ 6,670-crore fraud at the bank, may face additional

Former managing director of Punjab and Maharashtra Co-operative (PMC) Bank Joy Thomas, a key accused in the ₹ 6,670-crore fraud at the bank, may face additional charges for tampering with records. Mumbai Police intends to file the charge sheet against Thomas and the other accused by the end of this month. Thomas is presently in judicial custody.

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An officer from economic offences wing (EOW) told HT on condition of anonymity that Thomas could attract an additional charge against section 477A (falsification of accounts) of the Indian Penal Code (IPC) for which an offender may be sentenced to seven years’ imprisonment. The investigation has found certain bank records were falsified by bank employees, possibly at Thomas’s orders.

“These employees will be quizzed to ascertain their exact role and nature of involvement and after that it will be decided whether they are accused in the alleged crime or witnesses,” the officer said. Also, if the forensic lab’s examination of PMC Bank’s server reveals tampering with the system, sections of the Information Technology Act would also be added, the officer added.

So far, the investigation has revealed Thomas enabled loans to Housing Development Infrastructure Limited (HDIL), will make post-dated loan documents, and get these approved by the bank’s board directors. “He would also make post-dated minutes of the board of directors meeting,” said an EOW officer.

Thomas and 11 other arrested accused are booked under sections 420 (cheating), 406 (criminal breach of trust), 409 (criminal breach of trust by public servant, or by banker, merchant or agent), 465 (forgery), 468 (forgery for purpose of cheating), 471 (using as genuine a forged document or electronic record), and 120 B (criminal conspiracy) of IPC.

The EOW has seized assets worth ₹4,000 crore in the case, which belong to the two HDIL promoters, Rakesh Kumar and Sarang Wadhawans and former chairman of PMC Bank, Waryam Singh. HDIL properties mortgaged to PMC Bank are under the process of being auctioned under SARFAESI Act by the bank’s RBI-appointed administrator.