PMC Bank Scam: Two Auditors Arrested
PMC bank account holders display placards as they raise slogans during their protest outside Reserve Bank of India (RBI), in New Delhi, on Nov 6, 2019. (Photographer: Kamal Singh/PTI)

PMC Bank Scam: Two Auditors Arrested


The Economic Offences Wing of the Mumbai Police arrested two auditors on Monday night in connection with the alleged Rs 4,355-crore Punjab and Maharashtra Cooperative Bank scam, an official said.

The arrested duo, Jayesh Sanghani and Ketan Lakdawala, had served as statutory auditors when the scam was committed and are suspected to have played a key role in covering up the irregularities involving some top officials of the bank, PTI reported citing an unidentified source.

Police had earlier called Sanghani and Lakdawala, the proprietors of Ashok Jayesh & Associates and Lakdawala & co, respectively, for questioning.

They failed to give convincing replies regarding their role as PMC Bank’s statutory auditors, the official said, adding that the duo have been booked under relevant sections of the Indian Penal Code.

Probing the scam, the EOW suspects a nexus between some of the accused and HDIL group companies.

According to investigators, a deep-rooted conspiracy caused loss of public funds.

The agency had said that six people have lost their lives due to loss of money and the public is protesting over the irregularities.

The police so far arrested five persons, including promoters of the Housing Development & Infrastructure Ltd. and top officials of the PMC Bank.

Also read: Closely Monitoring PMC Bank Case, Forensic Audit Underway: RBI Governor

No Pre-Arrest Bail For Two PMC Bank Directors

A sessions court in Mumbai on Monday rejected the pre-arrest bail pleas filed by two directors of the PMC Bank.

Additional Sessions Judge ST Soor turned down the applications of Parmeet Sodhi and Surjit Singh Narang after noting that their custodial interrogation was required.

Narang and Sodhi had claimed that they were not aware of the loans given by PMC Bank to the HDIL Group.

Opposing their pleas, the Mumbai Police's EOW had said that prima facie a nexus between some of the accused and HDIL group companies has been established by the agency.

Also read: PMC Bank Fallout: What’s ‘As Safe As A Bank’?

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.