The Punjab and Maharashtra Cooperative (PMC) Bank has been under fire recently for allegedly committing a scam of ₹4,335 crore. After which, the Reserve Bank of India (RBI) had ordered the shutdown. The bank's former Director Surjit Singh Arora was arrested by the Economic Offence Wing (EOW) of the Mumbai Police on Wednesday, October 16.
Now the Mumbai Esplanade Court has extended the former director's police custody till October 24 for further investigation.
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During a hearing about the alleged PMC Bank scam, Mumbai Police demanded an extension in the custody of the former director. The investigating officers alleged that Singh had been part of the scam as he had 'misused' his power.
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Arora was involved in the loan sanctioning process of the entire PMC Bank scam that has come to light. Notably, this is the fifth arrest in the PMC Bank crisis and the other four includes promoters of Housing Development and Infrastructure Limited (HDIL) group Rakesh and Sarang Wadhawan, former PMC Bank chairman Waryam Singh and former Managing Director (MD) of the bank Joy Thomas.