PMC Bank scam: EOW arrests HDIL’s Rakesh Wadhawan, Sarang Wadhawan

ED registers money laundering case in PMC Bank loan fraud

The economic offences wing (EOW) of the Mumbai police arrested Housing Development & Infrastructure (HDIL) promoter Rakesh Wadhawan and his son Sarang Wadhawan on Thursday in connection with the Punjab and Maharashtra Co-operative (PMC) Bank scam.

The EOW also seized assets worth Rs 3,500 crore of HDIL.Sources said former PMC Bank managing director Joy Thomas’ accounts had been seized, and the police also searched the residence of S Waryam Singh, the bank’s former chairman, and confiscated one of his demat accounts having investments of Rs 100 crore.

In a press conference, an EOW official said the police were searching for Thomas and others named in the First Information Report (FIR) on irregularities at0 PMC Bank. The FIR was registered by the police on September 30. Meanwhile, the Enforcement Directorate (ED) registered a criminal case of money laundering against Waryam Singh, Joy Thomas, HDIL’s Wadhawans, and the other officials and entities named in the FIR.

Confirming the development, an ED official said an Enforcement Case Information Report (ECIR) had been filed on Thursday under the Prevention of Money Laundering Act (PMLA) to probe the alleged fund diversion at PMC Bank. An ECIR is the ED’s equivalent of a police FIR…

Mumbai police file FIR in PMC Bank fraud case; ED may initiate probe soon

Police to set up SIT team, hire forensic auditor

A first information report was registered against Punjab and Maharashtra Co-operative Bank Chairman S Waryam Singh, office-bearers, suspended managing director Joy Thomas, Housing Development & Infrastructure (HDIL), its associate firms and promoters Rakesh and Sarang Wadhawan, among others, by the economic offences wing (EoW) of the Mumbai Police on Monday.

A look out notice has also been issued against Thomas, sources told Business Standard. According to a PTI report, a lookout circular was also issued against Wadhawans. The Enforcement Directorate is likely to register a case under the Prevention of Money Laundering Act in the next few days based on the FIR, sources said. The case filed is a base offence under money laundering, said an ED official.

In the EoW case, the accused have been charged under Sections 409 (breach of trust), 420 (cheating), 465 (forgery), 466 (aggravated form of forgery), 471 (using a forged document as genuine), and 120 (B) (criminal conspiracy) of the Indian Penal Code. The EoW has formed a special investigation team to probe the matter. The FIR was lodged following a complaint by the Reserve Bank of India (RBI) appointed administrator of PMC Bank for financial irregularities at the lender. Separately, the police will appoint a forensic auditor to study the money trail and a legal advisor for carrying the probe further….

Read More: PMC Bank Crisis

RBI hikes withdrawal cap to Rs 10,000 from Rs 1,000 for PMC Bank customers

The amount is the maximum one can withdraw in six months, and includes the Rs 1,000 withdrawal allowed earlier

PMC Bank Crisis: The Reserve Bank of India (RBI) on Thursday increased the withdrawal limit for depositors in Punjab and Maharashtra Cooperative Bank (PMC) to Rs 10,000 from Rs 1,000 earlier.

“The relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank is closely monitoring the position and shall continue to take further steps as are necessary to safeguard the interest of the depositors of the bank,” the RBI said in a statement.

The amount is the maximum one can withdraw in six months, and includes the Rs 1,000 withdrawal allowed earlier. So the additional the customer can withdraw now is Rs 9,000. This was done “on a preliminary assessment of the bank’s latest depositor and liquidity profile as furnished by the administrator,” the RBI said. With the relaxation, “more than 60 per cent of the depositors of the bank will be able to withdraw their entire account balance,” the RBI said in a statement.

The statement said the RBI was forced to clamp down on deposit withdrawal from the bank “on account of major financial irregularities, failure of internal control and systems of the bank and wrong/under-reporting of its exposures under various off-site surveillance reports to RBI that came to the Reserve Bank’s notice recently.”