PMC bank scam: HDIL promoters Rakesh and Sarang Wadhawan sent to police custody till October 14

The HDIL promoters will now be in police custody till October 14 for further questioning in connection with the ₹4,300 crore loan default case

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The Housing Development and Infrastructure Limited (HDIL) promoters Rakesh and Sarang Wadhawan have been sent to police custody till October 14 for their involvement in the Punjab and Maharashtra Co-operative (PMC) Bank fraud.

Previously, the Wadhawan brothers were arrested by Mumbai Police's Economic Offences Wing (EOW) after Reserve Bank of India (RBI) had ordered the shutdown of PMC bank. The HDIL promoters will now be in police custody till October 14 for further questioning in connection with the ₹4,300 crore loan default case.

Also Read: HDIL Owner Rakesh Wadhawan’s Name Surfaces In Another Alleged Cheating Case

The decision to send the duo to police custody comes after both were produced at Mumbai's Esplanade Court on October 9, Wednesday. Alongside, Waryam Singh, the former chairman of PMC Bank, has also been sent to police custody till October 14.

Notably, Mumbai-based chartered accountant firm Rajeswari and Associates was the legal auditor of HDIL and they too are expected to be interrogated. Furthermore, auditors of PMC Bank will also be scrutinised as they failed to classify loans awarded to HDIL as non-performing assets (NPA) despite the company's inability to repay dues.

The crisis in PMC bank was first exposed on September 23, when RBI directed it to shut down its operations. In addition, a withdrawal limit of ₹1000 per customer which has been imposed. This has now been increased to ₹25,000 per account holder for a period of six months.

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