Two HDIL directors held in PMC Bank scam; property attached

The Mumbai police on Thursday (October 3) arrested two directors of the Housing Development Infrastructure Limited (HDIL) in the Punjab and Maharashtra Cooperative (PMC) Bank scam.

According to a senior police official, Rakesh Wadhawan and his son Sarang Wadhawan, accused of loan default, have been arrested by the Economic Offences Wing (EOW). Properties worth ₹3,500 crore of HDIL have also been frozen by the EOW, he said. “We arrested the two directors of HDIL after a detailed interrogation,” the official said.

EOW had registered an FIR against senior officials of HDIL and PMC Bank over allegedly causing losses to the tune of ₹4,355.43 crore to the bank. The offences were registered under Section 409 (criminal breach of trust by a public servant or banker), 420 (cheating), and 465, 466 and 471 (related to forgery) of the Indian Penal Code along with 120 (b) (criminal conspiracy), he said.

The EOW has also formed SIT to investigate the case, he said. The FIR had mentioned PMC Banks now-suspended Managing Director Joy Thomas, Chairman Waryam Singh and other executives.

Meanwhile, Reserve Bank Enhances withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to ₹25,000.