PMC Bank’s Former Chairman Waryam Singh Gets Police Custody Till Oct. 9
Police personnel stand guard outside Punjab and Maharashtra Cooperative Bank (PMC) at GTB Nagar, in Mumbai (Source: PTI)

PMC Bank’s Former Chairman Waryam Singh Gets Police Custody Till Oct. 9


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

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 Ltd. Rakesh and Sarang Wadhawan.

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

The lawyer also told the court that there was no conflict of interest in Singh being a director in HDIL, contending that the offence came to light later.

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

Also read: Former Managing Director Of PMC Bank Joy Thomas Sent To Police Custody Till Oct. 17

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” defaults, the EOW told the 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.

Also read: PMC Bank Case: HDIL’s Rakesh And Sarang Wadhawan Arrested, Shares Fall

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.