PMC ex-director held

A former director in the crisis-hit Punjab and Maharashtra Co-operative (PMC) bank, Surjit Singh Arora, was arrested by the Economic Offences Wing on Wednesday in connection with the investigation into the Rs 4355 crore scam in the bank.

Arora is the 5th arrest in the case after the EOW registered an FIR on October, seeking to investigate the multi-crore scam in the bank that has left over 11 lakh depositors scurrying for their life-long savings.

Earlier, the former chairman of the bank, Waryam Singh, Managing Director Joy Thomas along with the promoters of HDIL, Rakesh and Sarang Wadhwan, had been arrested by the EOW.

Like the other accused, Arora too has been charged with fraud, cheating, falsification of accounts and criminal conspiracy as per the FIR in the case.

Arora, one of the 12 directors in the now-dismissed Board of Directors of the bank, was called for questioning to the EOW headquarters at Crawford Market earlier during the day.

Sources said Arora's arrest became inevitable after he found to be evasive in his answers

On his alleged involvement in the scam.

EOW sources said that although Arora knew about the irregularities in the bank's finances, he did not report the matter to the regulators. The EOW suspects that the reason for Arora's silence could be on account of him being a beneficiary of the scam. The EOW has started Sourcing Arora's investments and savings to get a clue to his involvement in the scam. Apart from Arora, LoCs had been issued against 17 persons, including bank officials, after the EOW began the investigation. Arora is likely to be produced in a court on Thursday where the EOW will seek his custodial remand.

The questioning of Arora, sources said, will also help reveal the involvement of other board members in the scam.