PMC Bank Fraud Case: Custody Of Waryam Singh, HDIL’s Wadhawans Extended
Logos of PMC Bank and HDIL seen at Dreams Mall in Bhandup, Mumbai. (Photographer: Benny Antony/BloombergQuint)

PMC Bank Fraud Case: Custody Of Waryam Singh, HDIL’s Wadhawans Extended


A Mumbai court on Wednesday extended till Oct. 14 the police custody of a former chairman of Punjab and Maharashtra Cooperative Bank and two directors of Housing Development Infrastructure Ltd. arrested in connection with the alleged Rs 4,355 crore fraud at the bank.

HDIL Chairman and Managing Director Rakesh Wadhawan and son Sarang Wadhawan were arrested on Thursday. PMC Bank’s Former Chairman Waryam Singh was held on Saturday.

The Economic Offences Wing of the Mumbai Police, which had arrested the trio, produced them before Additional Chief Metropolitan Magistrate SG Shaikh as their custody ended on Wednesday.

The police told the court they need to interrogate the accused further in connection with the PMC Bank fraud. The court then extended their remand till Oct. 14.

A number of PMC Bank customers staged protest against bank officials outside the court. The EOW had last week registered a case against the Wadhawans and the PMC Bank for allegedly causing losses of Rs 4,355.43 crore to the lender.

Properties worth around Rs 3,500 crore, belonging to HDIL, were also frozen by the EOW during the probe. Besides the trio, police have also arrested Joy Thomas, former managing director of the PMC Bank, in the case. He is in police custody till Oct. 17.

Also read: PMC Bank Case: Why Housing Societies Got Locked Out Of Their Money

The EOW had earlier told the court the PMC Bank replaced 44 loan accounts of HDIL and its group companies, whose outstanding balance was significantly higher, with 21,049 fictitious loan accounts.

Also read: From Madhavpura Mercantile To PMC Bank: Why Little Has Changed In Cooperative Banking

It is alleged that the bank's board of directors and executives, including Joy Thomas, had "full knowledge" of this act.

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