PMC Bank scam: HDIL Directors sent to police custody till Oct 9

The FIR was registered under Sections 409 (criminal breach of trust), 420 (cheating), 465 (forgery), 466 (forgery of record of court or public register), 471 (using a forged document as genuine) and 120B (criminal conspiracy).

Written by October 4, 2019 19:09

New Delhi: Promoters of debt-ridden Housing Development and Infrastructure Ltd (HDIL) Rakesh and Sarang Wadhawan, accused in Punjab and Maharashtra Co-operative (PMC) Bank scam, were sent to police custody till October 9 by the Esplanade Court.

The accused were brought to Esplanade Court in the afternoon by Economic Offence Wing (EOW) for remand proceedings.

The duo was arrested after they failed to cooperate in the investigation. A total of 10 out of 44 accounts which led to PMC Bank falling in debt were linked to HDIL. Personal accounts of the accused were among these 10 accounts.

On September 30, EOW of Mumbai Police had registered an FIR against senior officials of HDIL and PMC bank in connection with a fraud of over Rs 4,355 crores.

“EOW has formed a special investigation team for the probe. The FIR has been registered on the complaint given by one Jasbir Singh Matta,” police had said in a press note.

According to the police, PMC bank officials gave loans to HDIL between 2008 and 2019 despite no repayment of the previous loans.

The FIR was registered under Sections 409 (criminal breach of trust), 420 (cheating), 465 (forgery), 466 (forgery of record of court or public register), 471 (using a forged document as genuine) and 120B (criminal conspiracy).

Suspended MD Joy Thomas had on September 28 admitted that the bank did not report the financial exposure to the Reserve Bank of India (RBI) for over six years. (ANI)