Forum Gandhi

The Economic Offences Wing of the Mumbai police will summon key officials of PMC Bank for questioning in the case related to non-reporting of crucial loan data, which resulted in the Reserve Bank of India’s action against the bank.

“First the documents related to the case will be procured from the bank and there will be a search warrant for it as well. There will be a notice given to the said people. All the alleged accused will be summoned for inquiry,” said a source close to the investigation.

The EoW had filed an FIR against the key officials of the bank in connection with an alleged scam. The FIR names Joy Thomas, former Managing Director of PMC Bank, Waryam Singh, Chairman of the bank, and other officials, along with the promoters of Housing Development and Infrastructure Limited (HDIL), under several sections of the Indian Penal Code (IPC) for alleged fraud. The FIR was registered on behalf of the Reserve Bank of India (RBI).

The RBI had placed Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) under directions for six months from the close of business of the bank on September 23.

According to the FIR/statement, between 2008 and August 2019, HDIL Pvt Ltd had taken a loan from PMC Bank’s Bhandup branch. However, the said company was unable to return the amount, and PMC did not declare HDIL’s account as Non-Performing Advances (NPA) tothe RBI. PMC Bank’s authorities allegedly made dummy accounts, and did not show the exact amount of loans granted by the bank.

According to the EOW, it is alleged that the authorities of both PMC bank and HDIL committed the fraud together and siphoned off cash ₹4,355 crore for their personal use.

Hence, the offence has been registered under sections 409 (criminal breach of trust by public servant, or by banker, merchant or agent) 420 420, (cheating and dishonestly inducing delivery of property) 465 (punishment for forgery), 466 (forgery of record of court or of public register by a public servant) 471 (using a forged document as genuine) of the Indian Penal Code.

In a statement issued to the stock exchanges, HDIL said “it has been made aware of certain regulatory action against PMC Bank and its management. It is also learnt that certain action is being initiated against HDIL and its promoters. We are unaware of any action against HDIL and its promoters.”