PMC Bank Scam: HDIL’s Wadhawans, Waryam Singh Put In Judicial Custody Till Oct. 23
Customers read a notice issued by RBI on the shutters of a PMC Bank ATM in Mumbai. (Photo: BloombergQuint)

PMC Bank Scam: HDIL’s Wadhawans, Waryam Singh Put In Judicial Custody Till Oct. 23

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A Mumbai court on Wednesday remanded two top officials of Housing Development & Infrastructure Ltd. and Punjab and Maharashtra Cooperative Bank's former chairman in judicial custody in connection with the multi-crore scam at the lender.

Meanwhile, several PMC Bank customers protested outside the court.

The three accused—HDIL Chairman and Managing Director Rakesh Wadhawan and his son Sarang Wadhawan, and PMC Bank's Former Chairman Waryam Singh—were produced before Metropolitan Magistrate SG Shaikh as their custody ended on Wednesday. The magistrate remanded them in judicial custody till Oct. 23.

The Wadhawans were arrested on Oct. 3 while Singh was held on Oct. 5 for their alleged involvement in the Rs 4,355 crore PMC Bank scam.

Economic Offences Wing of Mumbai Police had earlier in October registered a case against the Wadhawans and top officials of PMC Bank for allegedly causing losses to the tune of Rs 4,355.43 crore to the bank.

After the scam was unearthed at the bank, which has deposits of over Rs 11,000 crore, the Reserve Bank of India appointed an administrator to look after its operations, and capped withdrawals at Rs 1,000. On Monday evening, the withdrawal limit was hiked to Rs 40,000 per customer.

Besides these three accused, the EOW also arrested the bank's former managing director Joy Thomas, whose police custody will expire on Oct. 17.

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

The EOW had earlier told the court that bank officials replaced 44 loan accounts of HDIL with 21,049 fictitious accounts to camouflage defaults by the real estate group.

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