PMC scam: ED files PMLA case, raids at 6 places in Mumbai

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The Economic Offences Wing of the Mumbai Police arrested realty firm HDIL's Sarang Wadhawan and his brother Rakesh Kumar Wadhawan, in connection with the Punjab and Maharashtra Cooperative (PMC) Bank loan case, said a media report.

Thomas was summoned to the EOW office at the city police headquarters and arrested after questioning.

Explaining the modus operandi of the case, the FIR said that HDIL promoters allegedly colluded with the bank management to draw loans from the bank's Bhandup branch.

EOW had registered an FIR on Monday against senior officials of HDIL and the PMC Bank for allegedly causing losses to the tune of ₹4,355.43 crore to the bank.

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Earlier in the day, the promoters of debt-ridden Housing Development and Infrastructure Ltd (HDIL) Rakesh and Sarang Wadhawan, accused in Punjab and Maharashtra Co-operative (PMC) Bank scam, were sent to police custody till October 9 by the Esplanade Court. Only a small group of employees, allegedly close to PMCbank's former managing director Joy Thomas, were aware of these bank accounts. The cooperative bank kept giving loans despite the company being taken for insolvency, investigators said last week.

The curbs included barring the bank from lending and accepting fresh deposits for the next six months apart from capping withdrawals first at ₹1,000 per account which was later revised upwards to ₹10,000 and then again to ₹25,000.

According to sources, the overall exposure of the bank to the financially stressed HDIL group is around Rs 6,500 crore or over 73 percent of the advances, and all of it is not being serviced. The complaint has been filed under the Prevention of Money Laundering Act. The Enforcement Directorate is looking into allegations that PMC Bank did not report all non-performing assets or bad loans after providing funds to a number of companies.

As per information, PMC bank officials created 44 hidden accounts with fake credentials to help HDIL.

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