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Mumbai police’s EOW files FIR in PMC Bank case

Monday, September 30, 2019, 14:36
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MUMBAI: Based on the complaint given by a manager attached to the Bhandup branch of Punjab Maharashtra Cooperative (PMC) Bank, the Mumbai Police on Monday registered a First Information Report (FIR) in the matter. The case amongst others, has been registered against the bank’s erstwhile chairman Waryam Singh, Managing Director Joy Joseph Thomas, promoters- Sarang and Rakesh Wadhawan of the Housing Development and Infrastructure Limited (HDIL) group and seven other realtor companies through which funds were allegedly diverted and other unknown bank official. According to the FIR, the alleged irregularities has been pegged at Rs.4,355.46 crores, the said amount however might go up during the course of the probe, sources in the know told ET. The FIR has been registered under certain sections of the Indian Penal Code (IPC) including those for cheating (420), criminal breach of trust by banker (409), forgery (465), using as genuine a forged document (471) and criminal conspiracy (120(B)). The scope of the probe will include the favour extended to the accused borrower, the violation of the RBI and other regulatory norms and if there has been any instances of quid-pro-quo between the erstwhile board of directors and the borrowers to allow loans in violations of the norms.“The manager has lodged a complaint on the behest of the RBI appointed administrator. His complaint is the starting point of the probe. While we suspect that the quantum could be above Rs 6000 crores, the amount has been mentioned by the complainant and the same has been noted in the FIR,”explained the official. “Thomas would be the first official to be questioned in the case. All the other mentioned will also be called in due course and if coercive action is required, the same would be taken,” added the official. “While so far only one borrower, HDIL has been named in the FIR, the probe will look into if similar favours were extended to other borrowers and the role of the other private real estate firms that alleged help round tripping the funds,”added another official.

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