The Economic Offences Wing (EOW) of the Mumbai Police arrested Waryam Singh, former chairman of the Punjab and Maharashtra Cooperative (PMC) Bank, late Saturday evening. Singh, one of the four accused against whom the EOW had registered an FIR, had been detained earlier in the day.
A magistrate court on Saturday remanded Joy Thomas, the former managing director of PMC Bank, in the EOW’s custody for two weeks. The police told the court that Thomas was one of the key accused in the conspiracy that led to the Rs 4,355 crore scam at the bank, and had allegedly guided or committed most of the credit to the HDIL group of companies, which did not use the funds for their designated purpose.
Rakesh Wadhawan and Sarang Wadhawan, promoters of HDIL, are already in police custody.
In the FIR registered on Monday against Rakesh Wadhawan, Sarang Wadhawan, Joy Thomas, and Waryam Singh, police said the actions of the accused allegedly led to bank losses totalling Rs 4,355.46 crore. Police had first registered an offence on a complaint from the RBI following the collapse of the bank.
The RBI had stepped in and placed restrictions on withdrawals after the crisis at the bank came to light last week owing mainly to massive Non Performing Assets (NPA) that were under-reported.