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Wednesday, Dec 11, 2019

PMC Bank fraud: Son of former MLA held in Mumbai; ninth arrest in case

Rajneet Singh, who was arrested from his Bhandup home, was in the recovery committee of PMC Bank, and multiple EOW officers, who did not wish to be named, said he was aware of the ‘bad status of all loan accounts of Housing Development and Infrastructure Limited (HDIL)’.

mumbai Updated: Nov 17, 2019 05:49 IST
Vijay Kumar Yadav
Vijay Kumar Yadav
Hindustan Times, Mumbai
The Wadhawans along with former PMC Bank MD Joy Thomas, former PMC Bank chairman Waryam Singh, former PMC Bank director Surjit Singh Arora and three auditors have been arrested in the PMC fraud case so far.
The Wadhawans along with former PMC Bank MD Joy Thomas, former PMC Bank chairman Waryam Singh, former PMC Bank director Surjit Singh Arora and three auditors have been arrested in the PMC fraud case so far.(HT PHOTO)
         

The Economic Offences Wing (EOW) of Mumbai police arrested Rajneet Singh, son of former Bharatiya Janata Party (BJP) MLA Sardar Tara Singh, on Saturday in the Rs4,355-crore Punjab and Maharashtra Co-operative (PMC) Bank fraud case. Rajneet Singh, who is one of the 12 board of directors of PMC bank, is the ninth person to be arrested in connection with the fraud. He will be produced in a holiday court on Sunday.

Joint commissioner of police (EOW), Rajvardhan Sinha, confirmed Rajneet Singh’s arrest.

Rajneet Singh, who was arrested from his Bhandup home, was in the recovery committee of PMC Bank, and multiple EOW officers, who did not wish to be named, said he was aware of the “bad status of all loan accounts of Housing Development and Infrastructure Limited (HDIL)”.

According to one of the officers, Rajneet Singh may be charged with “deliberately overlooking irregularities at the bank and wilful omission”.

Meanwhile, Enforcement Directorate (ED) officials on Saturday informed a city court that they would need two more days to file their response on the EOW’s application seeking permission to auction perishable properties of HDIL and its promoters, Rakesh Wadhawan and his son Sarang. The court granted two days to ED.

The RBI administrator of PMC Bank, too, informed the court that they would be auctioning the moveable assets of HDIL and the Wadhawans under SARFAESI Act, apart from the immovable properties.

Earlier EOW was taking efforts to auction the perishable properties of HDIL under Section 102 of Criminal Procedure Code (CrPC). These properties include a yacht, two aircrafts, 14 vehicles, which are not mortgaged with the bank. Wadhawans had already given their consent to sell off these properties to repay the bank.

The Wadhawans along with former PMC Bank MD Joy Thomas, former PMC Bank chairman Waryam Singh, former PMC Bank director Surjit Singh Arora and three auditors have been arrested in the case so far.

The EOW has provisionally attached properties worth Rs 4,000 crore in the matter and the police have frozen 300 bank accounts linked to all the accused and companies named in the fraud.