PMC Bank Crisis: Custody of HDIL directors extended till October 16

PMC Bank Crisis: Custody of HDIL directors extended till October 16

The police custody of former PMC Bank chairman Waryam Singh and Housing Development and Infrastructure Limited (HDIL) directors Rakesh Wadhawan and Sarang Wadhwan was on Monday extended to October 16.

Housing Development and Infrastructure Ltd (HDIL) Rakesh Wadhawan and his son Sarang, arrested on October 3. It is being said that Joy Thomas, who was the Managing Director of the bank had full knowledge of what was happening in the bank.

EOW is currently investigating the matter. While appealing for an extension, EOW shared that they are uncovering new details in regards to the case almost on a daily basis. In reply, the defence counsel said they will not object extension of their client's custody but they should show some development in the case.

 A few days ago, it came to light PMC Bank’s MD Joy Thomas owns 10 properties in Pune with his second wife, who he married after converting to Islam.

It has been a few days since the crisis at the Punjab and Maharashtra Cooperative (PMC) Bank has been brought to light and depositors are mulling different options to be able to get access to their hard-earned money.

To get themselves out of this situation some of the big depositors of PMC Bank have come out with a suggestion that 200 big depositors, who have Rs 5 crore or more in their PMC account will not withdraw any amount for the coming three years if Reserve Bank of India (RBI) allows the bank to resume operations.

According to reports, the major cause of this crisis is the exposure that the bank had to bankrupt Housing Development and Infrastructure Limited (HDIL).

According to the police, PMC Bank had replaced 44 loan accounts of the HDIL group with over 21,000 fictitious loan accounts, and through this managed to "camouflaged" defaults by the group.