Three more former directors of PMC bank arrestedUpdated: Dec 04, 2019 00:12 IST
Three more former directors of the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank were arrested on Tuesday for their alleged involvement in the Rs6,670-crore fraud, taking the total number of arrests in the case to 12.
Rajvardhan Sinha, joint commissioner of police, EOW, confirmed the arrests of Jagdish Mookhey, 75, Trupti Bane, 50 and Mukti Bavisi, 50, to Hindustan Times.
An official from the Economic Offences Wing (EOW) of the Mumbai Police said that three other former directors may not be arrested owing to their old age and deteriorating health condition.
Mookhey was part of the bank’s audit committee (from 2005 to 2019); Bane was part of the recovery committee (from 2010 to 2015) and the loans and advances committee (from 2015 to 2019); and Bavisi was part of the loans and advances committee (from 2011 to 2019 September).
An EOW official, who is part of the special investigation team (SIT) that arrested the three, said, “All three had similar roles. They were aware of the illegal activities and deliberately turned a blind eye.” The three accused were arrested from their residences in Mumbai and will be produced before the Esplanade court on Wednesday.
Before this, the EOW had arrested Housing Development Infrastructure Limited (HDIL) promoters Rakesh Wadhwan and Sarang Wadhwan, ex-MD Joy Thomas, ex-chairman Waryam Singh, ex-director Surjit Singh Arora and former MLA Tara Singh’s son ex-director Rajneet Singh. The nine accused are in judicial custody now.
According to the EOW, the PMC bank management concealed from the banking regulators’ scrutiny huge loan defaults by HDIL group firms. The RBI had on September 24 imposed operational curbs on PMC Bank,
The EOW have also provisionally attached properties worth Rs4,000 crore in the matter. The police have also frozen 300 bank accounts linked to all the accused, companies named in the fraud. The RBI is in the process of valuing properties mortgaged with them by HDIL. Once valuation is done, they will auction the properties and infuse the money into the bank.