PMC Bank fraud: EOW searches two places, 17 Look Out Circulars issued

The corporate office of Housing Development and Infrastructure Limited (HDIL) along with the Bhandup branch of PMC were searched and relevant documents seized. In addition, 17 Look Out Circulars (LOCs) have been issued in connection with the case.

PMC Bank customers protest outside the RBI’s Mumbai office on Tuesday. Ganesh Shirsekar

THE ECONOMIC Offences Wing (EOW) of the Mumbai Police on Tuesday conducted searches at two places in connection with the FIR registered following the collapse of the Punjab and Maharashtra Co-operative (PMC) Bank. The corporate office of Housing Development and Infrastructure Limited (HDIL) along with the Bhandup branch of PMC were searched and relevant documents seized. In addition, 17 Look Out Circulars (LOCs) have been issued in connection with the case.

A senior EOW officer said, “We conducted searches at the corporate office of HDIL at Bandra and the PMC office at Bhandup and seized certain documents.” The officer added that they have also issued 17 LOCs against those connected to the case. The 17 include LOCs against Rakesh and Sarang Wadhawan of HDIL. “There was an LOC against them in another case. We have issued fresh LOCs in this case too,” the officer said. The LOCs will ensure that the moment any of these people attempt to leave the country, the police will receive intimation about the same.

Further, a police team also went to the Thane residence of Joy Thomas, former MD of the PMC Bank, but he was not present. The police team has issued summons for him to join the investigation. The EOW had on Monday registered an FIR on charges of cheating, forgery and conspiracy against the two Wadhawans, Thomas and chairman Waryam Singh following a complaint by the RBI that the Non Performing Assets (NPA) related to the loans granted to the HDIL had been undervalued and forged documents were used to keep this information from the RBI causing losses of Rs 4,355.46 crore to the bank.

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Apart from this, sources close to the Wadhawans said that Sarang and his team met the administrator and discussed ways to resolve the issue. In a statement released by him, Sarang, Vice Chairman and Managing Director, HDIL, said, “…The company has over a period of time availed of banking facilities from various banks and institutions including PMC Bank in the normal course of business. Adequate security cover in favour of the banks, including PMC Bank, have been created over the assets of the company for these facilities in due compliance with all banking regulations as per guidelines described by the RBI.”

The statement goes on to say, “All the books of the company are audited and reflect a hue and fair picture as regards to the affairs of the company and the group. We are facing a temporary cash flow issue due to external environment in the real estate. In relation to borrowings from PMC Bank, we have already issued letters requesting appointment with the administrator in charge of the bank to put forth the true and correct picture as also to discuss a strategy hereby the interest of all stakeholders and in particular PMC Bank and its depositors are protected. We shall also take all necessary steps and extend our full cooperation with any and all agencies/authorities during this period. We would endeavour to put in place plans to address interest and aspirations of all the stakeholders and extend full co-operation with the regulators and authorities during this time.”

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