Mumbai: Surjit Singh Arora, a former director of Punjab and Maharastra Cooperative (PMC) Bank, was arrested by the EOW (Economic Offences Wing) of the Mumbai Police with regard to its alleged fraudulent loans investigation issued to the HDIL (Housing Development and Infrastructure Limited) group.
EOW has also arrested former PMC managing director Joy Thomas and former, former PMC managing director Joy Thomas and former and former chairman Waryam Singh who all are in judicial custody. After sanctioning large amount of loan to Wadhawans, bank loses Rs. 4,335 Crore.
Police brought Mr.Arora to EOW office for inquiries on Wednesday morning. “We found evidence to indicate that money was transferred from HDIL’s accounts to his private account. He was arrested after he was unable to provide a satisfactory explanation for this in his questioning,” an EOW officer said.
On Wednesday afternoon Mumbai Police commissioner Sanjay Barve met the depositors, protesting outside Esplanade court, of the Bank. Mr Brave consolidated the depositors and said, “I myself used to be a banker, and the EOW’s banking unit is quite adept at handling such cases. In the normal course, an audit by the Reserve Bank of India or any other body should reveal the anomalies that have come to light in the probe, and we are finding out why this did not happen”
“We have also seen that the loans were not directly issued in the name of HDIL, but were debited as personal loans to fictitious accounts. We are investigating how such a disproportionate rise in personal loans went unnoticed by any of the regulators. Lookout circulars have already been issued in the names of the directors, and property worth ₹4,056 crores have been attached.”, he added.
On Wednesday, the Wadhwans wrote a letter to the Enforcement Directorate and EOW through lawyers asking them to liquidate the assets.
The letter said, “We urge the ED and the EOW to take timely action by disposing of the assets to get the fair market value for the same. We further give our unconditional consent for the appropriation of the money received from the sale of these assets to be adjusted and appropriated towards the principal loan amount procured by us. It is in the larger public interest that the assets are disposed of off so as to mitigate the present situation.”