PMC Bank scam: Mumbai court sends former bank chairman Waryam Singh to police custody till 9 October

Waryam Singh (68), arrested by the Economic Offences Wing (EOW) of the Mumbai Police on Saturday from Mahim Church area, is the fourth person in police custody in connection with the PMC Bank case.

Press Trust of India October 06, 2019 17:22:09 IST
PMC Bank scam: Mumbai court sends former bank chairman Waryam Singh to police custody till 9 October
  • Waryam Singh, a former chairman of Punjab and Maharashtra Cooperative (PMC) Bank, was on Sunday remanded in police custody till 9 October by a local court

  • Singh was arrested by the Economic Offences Wing of the Mumbai Police in connection with the alleged Rs 4,355 crore scam at the bank on Saturday

  • The EOW has already arrested former managing director of the bank Joy Thomas, and promoters of (HDIL) group Rakesh and Sarang Wadhawan

Mumbai: Waryam Singh, a former chairman of Punjab and Maharashtra Cooperative (PMC) Bank arrested in connection with the alleged Rs 4,355 crore scam at the bank, was on Sunday remanded in police custody till 9 October by a local court.

PMC Bank scam Mumbai court sends former bank chairman Waryam Singh to police custody till 9 October

Representational image. News18

Singh (68), arrested by the Economic Offences Wing (EOW) of the 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 Limited (HDIL) group Rakesh and Sarang Wadhawan.

Singh's lawyer told the court on Sunday that Thomas as the Managing Director(MD) of PMC was responsible for the scam and that his client had no role in sanctioning loans to HDIL. The lawyer also told 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 the its Bhandup branch in Mumbai. 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" HDIL's loan 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.

Updated Date:

also read

PMC Bank scam: Police custody of former chairman Waryam Singh, Wadhawans of HDIL extended till 14 October
Business

PMC Bank scam: Police custody of former chairman Waryam Singh, Wadhawans of HDIL extended till 14 October

A court on Wednesday extended till October 14 the police custody of a former chairman of the Punjab and Maharashtra Cooperative (PMC) Bank and two directors of HDIL, arrested in connection with the alleged Rs 4,355 crore scam at the bank

PMC Bank scam: Finance Minister Nirmala Sitharaman faces protesters; promises legislation
Business

PMC Bank scam: Finance Minister Nirmala Sitharaman faces protesters; promises legislation

Finance Minister Nirmala Sitharaman on Thursday faced irate depositors of Punjab and Maharashtra Co-operative (PMC) Bank, and promised to bring in legislative changes for upholding of their interests

PMC Bank crisis: HDIL says loans taken after giving 'adequate security' cover; willing to discuss with bank to protect depositors' interest
Business

PMC Bank crisis: HDIL says loans taken after giving 'adequate security' cover; willing to discuss with bank to protect depositors' interest

Crisis-hit HDIL on Tuesday said that loans taken from banks including Punjab and Maharashtra Cooperative Bank were in normal course of business after providing adequate security cover and that it is ready to discuss with the bank to protect the interest of depositors