PMC Bank former chairman arrested by Mumbai police

Mumbai police’s economic offences wing (EOW) on Saturday arrested the former chairman of Punjab and Maharashtra Cooperative (PMC) Bank on Saturday in connection with financial irregularities at the bank to the tune of ~4,355 crore.

Singh was arrested in the evening after he surrendered before the EOW, to which he had written a letter first about his intention to give himself up, officials said. He is the fourth person arrested by EOW in connection with the fraud at PMC Bank, after Housing Development and Infrastructure Ltd (HDIL) executive chairman Rakesh Wadhwan, his son Sarang Wadhwan and PMC Bank’s suspended managing director Joy Thomas.

A court on Saturday remanded Thomas in police custody until October 17 Public prosecutor Rajkumar Machewar argued that Thomas was a key person involved in the fraud at PMC Bank . “The probe is at a very initial stage,” he said, seeking the remand. The bank had granted loans first on collateral that was pledged much later, he said.

Defence lawyer Rakesh Singh objected to the allegation. Singh said Thomas hadn’t been the decision maker but had been made a scapegoat. “He has nothing to gain unlawfully nor has the bank lost anything,” Singh argued.

The EOW registered a FIR on Monday against senior officials of HDIL and PMC Bank in the case. Rakesh and Sarang Wadhawan are in police custody until October 9.

The Enforcement Directorate (ED) registered a money laundering case against the Wadhwans on Friday.

The ED on Saturday also attached a private jet belonging to the Wadhawans in the case.

WARYAM SINGH IS THE FOURTH PERSON TO BE ARRESTED IN THE CASE, AFTER HDIL EXECUTIVE CHAIRMAN, HIS SON AND PMC BANK’S SUSPENDED MANAGING DIRECTOR JOY THOMAS