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PMC Bank case: Ex-chairman Waryam Singh gets police custody till October 9

Waryam Singh./ File photo

Waryam Singh./ File photo   | Photo Credit: PTI

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His lawyer told the court that Joy Thomas, as the former MD of the bank, was reponsible for the scam and Mr. Singh had no role to play in it.

Waryam Singh, a former chairman of Punjab and Maharashtra Cooperative (PMC) Bank arrested in connection with the alleged ₹4,355 crore scam was on Sunday remanded in police custody till October 9 by a local court.

Mr. Singh, 68, arrested by the Economic Offences Wing of Mumbai police on Saturday from Mahim Church area, is the fourth person in police custody in connection with the case.

The EOW has already arrested former managing director of the bank Joy Thomas, and promoters of Housing Development and Infrastructure Limited (HDIL) group Rakesh and Sarang Wadhawan.

Mr. Singh’s lawyer told the court on Sunday that Mr. Thomas, as the MD of PMC was responsible for the scam and that his client had no role in sanctioning loans to HDIL.

According to the FIR registered by the EOW, HDIL group promoters colluded with the bank management to take loans from the its Bhandup branch in Mumbai.

Despite non-payment, bank officials allegedly did not classify these loans as non performing advances, and hid the information from the Reserve Bank of India.

They “replaced” HDIL’s 44 loan accounts with over 21,000 fictitious loan accounts to “camouflage” HDIL’s loan defaults, the EOW told court on Friday.

The RBI had stepped in and imposed restrictions on withdrawals after the crisis at the bank came to light, causing panic among depositors of PMC Bank.

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Printable version | Dec 11, 2019 6:40:09 AM | https://www.thehindu.com/business/pmc-bank-case-ex-chairman-waryam-singh-gets-police-custody-till-october-9/article29609676.ece

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