Former MD of Bank arrested in Rs 4355 crore PMC Bank scam

(PTI) Mumbai, Ta. 4 October 2019, Friday

Mumbai Police's financial crime branch has arrested former bank managing director Joy Thomas in a Rs 4355-crore PMC bank scam. After the FIR was lodged by the Economic Crime Branch, the EDA conducted raids in Mumbai and six surrounding areas.

According to the police officer, the Economic Offenses Branch sent a summons to Thomas for questioning. Thomas was arrested at the end of the interrogation.

The Mumbai Police Economic Offenses Branch arrested Rakesh Wadhwan, Managing Director of Housing Development and Infrastructure Limited (HDIL) and his son Rakesh Wadhwan yesterday.

The Economic Offenses Branch filed an FIR on Monday against senior officials of HDIL and PMC Bank for damages of Rs 4355 crore to PMC Bank. Besides, the company's assets worth Rs 3500 crore have also been confiscated.

Yesterday, the Reserve Bank of India (RBI) raised the limit for withdrawing money for PMCB account holders from Rs 10,000 to Rs 25,000 for the next six months.

It is worth mentioning that for the second time, the limit to withdraw money from PMC Bank has been increased. First, the limit was Rs 1000, which was increased to Rs 10,000.

It is worth mentioning that PMC Bank is one of the ten largest co-operative banks in the country and has a deposit of Rs 11,600 crore. A special investigation team has been formed by the EOW to investigate this case. Police have issued a look-out notice against a total of 17 persons, including Rakesh Wadhwan and his son Sarang.