PMC Bank scam: Mumbai Police to investigate how RBI's forensic audit report missed irregularities; 'no auditors will be spared'

Mumbai Police commissioner Sanjay Barve said this after meeting a group of PMC Bank depositors met him during the day at his office.

Press Trust of India October 17, 2019 11:46:52 IST
PMC Bank scam: Mumbai Police to investigate how RBI's forensic audit report missed irregularities; 'no auditors will be spared'
  • In normal course an audit by the RBI or co-operatives should reveal such irregularities, the police official said

  • In this case, the loans were not shown in the name of HDIL but were shown in the accounts of different names

  • Auditors will have to explain what they saw, what they found and why they did not notice these things during audits, Barve said

Mumbai: The Mumbai Police will investigate how the Reserve Bank of India (RBI) audit missed various irregularities in the PMC Bank transactions, the metropolis police chief said on Wednesday.

PMC Bank scam Mumbai Police to investigate how RBIs forensic audit report missed irregularities no auditors will be spared

Representational image. PTI

Mumbai Police commissioner Sanjay Barve said this after meeting a group of PMC Bank depositors met him during the day at his office.

While interacting with the depositors, Barve said the police are looking into why and how these irregularities in the functioning of the bank did not figure in RBI's forensic audit report.

“In normal course an audit by the RBI or co-operatives should reveal such irregularities. We are looking into this aspect as to how and why the audits did not reveal these things,” he added.

In this case, the loans were not shown in the name of HDIL but were shown in the accounts of different names.

“We are looking into why such disproportionate rise in the loans were not noticed by the regulators,” he said.

"Police will not spare any independent auditors, cooperative auditors, RBI auditors. They all will have to explain what they saw, what they found and why they did not notice these things during audits," he said.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Lakshmi Vilas Bank placed under moratorium, withdrawals capped at Rs 25,000; RBI proposes merger with DBS Bank
India

Lakshmi Vilas Bank placed under moratorium, withdrawals capped at Rs 25,000; RBI proposes merger with DBS Bank

TN Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of the bank

RBI chief Shaktikanta Das says economic recovery 'stronger than expected', but warns of downside risk due to recent COVID-19 surge
India

RBI chief Shaktikanta Das says economic recovery 'stronger than expected', but warns of downside risk due to recent COVID-19 surge

The central bank which has introduced many unconventional measures to aid recovery apart from cutting key rates by 1.15 percent, expects the Indian economy to shrink by 9.5 percent in FY21

Ex-World Bank economist says RBI's proposal to allow businesses into banking is 'good-looking' step in 'bad direction'
India

Ex-World Bank economist says RBI's proposal to allow businesses into banking is 'good-looking' step in 'bad direction'

Kaushik Basu added that there is a good reason that all successful economies have a clear line between industries and corporations on one hand, and banks and lending organisations on the other