Pmc Bank Crisis - Hdil directors Rakesh, Sarang Wadhwan Arrested Monday

Pmc-Bank-Crisis-Hdil-directors-Rakesh, Sarang-Wadhwan-Arrested-Monday

The Mumbai: The economic offenses wing (EOW) of Mumbai Police, probing the Rs 4,355 crore Punjab and Maharashtra Cooperative (PMC) Bank cheating case, on Thursday arrested Rakesh Wadhwan and his son Sarang Wadhwan, directors of Housing Development and Infrastructure Limited (HDIL).

Highlights

• The accused and their companies have taken huge loan of Rs 4,355 crore but did not repay it, creating panic among the account holders
• This chaos led to the appointment of an administrator by the Reserve Bank of India (RBI)

Both the accused will be produced before a court on Friday. They were summoned by the police on Thursday morning but reportedly "not cooperating" with the investigators and later placed under arrest.

The accused and their companies had taken a huge loan of Rs 4,355 crore but did not repay it, creating panic among the account holders. This chaos led to the appointment of an administrator by the Reserve Bank of India (RBI).

The complaint, filed with the EOW, accuses the bank's management of concealing non-performing assets and disbursing loans leading to a loss of at least Rs 4,355 crore.

The complaint names the bank's chairman Waryam Singh and its managing director Joy Thomas, along with other bank officials, and accuses them of criminal breach of trust, forgery, and falsification of records.

It also names bankrupt realty firm HDIL, along with its directors Sarang and Rakesh Wadhwan, who were beneficiaries of the loans.

PMC Bank's exposure to The HDIL group was around Rs 6,500 crore as of September 19, 2019, the lender's suspended MD Thomas mentioned in his letter to the RBI.

“We have arrested these two accused and interrogations are on,” said Rajvardhan Sinha, EOW chief.

The EOW has provisionally attached Wadhwans’ properties worth over Rs 3,500 crore and further investigation in the matter is on.

The Mumbai Police filed a case against the former bank management and promoters of HDIL in the PMC Bank case on Monday.