PMC Bank officials deposited Rs 2,000 crore in HDIL bosses' personal accounts: Mumbai police

In the latest revelation in the Punjab and Maharashtra Cooperative (PMC) Bank case, the Mumbai Police have discovered that PMC Bank officials deposited around Rs 2,000 crore directly in the personal accounts of HDIL bosses. The money was deposited as the loan amount sanctioned by the bank to the bankrupt real estate company.

The Economic Offences Wing of the Mumbai Police on Thursday arrested HDIL promoters Rakesh Kumar Wadhawan and Sarang Wadhawan in connection with the PMC Bank case. The agency also attached properties worth Rs 3,500 crore. Rakesh is the executive chairman of HDIL, whereas Sarang is the managing director of the company. Both of them were quizzed by the EOW SIT (Special Investigation Team) on Thursday but they did not cooperate, following which the police arrested them.

The Mumbai police FIR has named PMC Bank's former chairman Waryam Singh and now-suspended managing director Joy Thomas in the case. As per information, PMC bank officials created 44 hidden accounts with fake credentials to help HDIL. Loans given to HDIL later turned into NPAs (Non-Performing Assets), leading to its bankruptcy and PMC's exposure of thousands of crores.

Also read: PMC Bank's actual exposure to HDIL at 73% of total loan book: Ex-MD Thomas in letter to RBI

These accounts didn't reflect in the RBI's audit of the bank, as they were secured with passwords. Thomas had earlier admitted to the RBI that the bank hid information regarding its bad loans to bankrupt real estate company HDIL. He admitted to the RBI the bank's actual exposure to the bankrupt HDIL stood at over Rs 6,500 crore -- four times the regulatory cap or 73 per cent of its entire assets of Rs 8,880 crore.

"The conduct of the bankers is intentional and has led to omission and non-compliance which points out their direct role in helping the borrower. PMC employees tampered with the software and that is why the 44 accounts mentioned in the FIR did not reflect in the system. Several employees are being questioned by SIT officials," a senior police officer privy to the investigation told India Today.

The police have also found a Demat account linked to the Waryam, which has shares worth around Rs 100 crore, Mumbai police DCP Pranay Ashok said. Police say Waryam might have received kickbacks from HDIL in lieu of the loans sanctioned by the bank during his tenure as its director and chairman. Former PMC Bank chairman Waryam was on the HDIL board for nine years from 2006 till 2015. He stepped down in March 2015 before selling his entire 1.91 per cent stake in the company.

The RBI had placed operational restrictions on the PMC Bank on September 23, citing irregularities in loans given to some companies for six months. It has been barred from renewing or granting loans or making fresh investments without the apex bank's approval.

Also read: HDIL promoters Rakesh Wadhawan, Sarang Wadhawan arrested; assets worth Rs 3,500 crore attached

RBI enhances withdrawal limit for PMC Bank depositors to Rs 25,000

PMC Bank crisis: RBI recommended removal of chairman last year over irregularities

Edited by Manoj Sharma