PMC scam: Economic Offence Wing arrests bank’s former directorhttps://indianexpress.com/article/india/pmc-scam-economic-offence-wing-arrests-banks-former-director/

PMC scam: Economic Offence Wing arrests bank’s former director

Earlier in the day, a court sent HDIL promoters Rakesh and Sarang Wadhawan and former PMC chairman Waryam Singh to judicial custody.

Mumbai: Depositors of Punjab and Maharashtra Cooperative (PMC) bank display placards during a protest over the bank’s crisis, outside the Reserve Bank of India building.

The Economic Offence Wing (EOW) of the Mumbai police on Wednesday arrested Surjit Arora (65), a former director with the Punjab and Maharashtra Cooperative (PMC) bank in connection with the Rs 4355 crore scam. This is the fifth arrest in the case.

Earlier in the day, a court sent HDIL promoters Rakesh and Sarang Wadhawan and former PMC chairman Waryam Singh to judicial custody. The trio along with Joy Thomas, former MD of the bank – he is still in police custody – were arrested by the Economic Offences Wing (EOW) of the Mumbai police in connection with the Punjab and Maharashtra Cooperative (PMC) bank scam.

“Arora was a director in the bank and was also linked to the loan disbursal mechanism at the bank. He was aware about the fraud but turned a blind eye to it There were also some fund transfers to his account from HDIL that are under the scanner,” said an officer. The police will produce him before the court tomorrow to seek his custody for interrogation

Earlier, several people who had deposits in the PMC bank sat on dharna outside the esplanade court in south Mumbai where the Wadhawans and Singh were to be produced before the court. Many also were carrying posters of Fattomal Punjabi and Sunjay Gulati, two account holders of PMC who died of heart attacks.

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Soon after the court production, several deposit holders were placated by the police and taken to the Mumbai police commissioners office located near the court to meet the commissioner. There Mumbai police commissioner Sanjay Barve, Joint commissioner of police (EOW) Rajvardhan, DCP (EOW) S Paropkari along with the investigating team met the depositors and assured them that they are investigating the case on priority.

An officer from the investigation team said they will also be questioning the other directors at PMC who were in charge when the scam took place. It is alleged that the four accused caused losses to the effect of Rs 4355 crore to the bank by granting loans illegally and undervaluing the Non Performing Assets (NPA) of the Sarangs promoted HDIL before RBI