PMC Bank crisis: EOW arrests two auditors in connection to the case

The Economic Offence Wing of Mumbai police arrested two auditors of PMC bank on Monday (Nov 11) for negligence and flouting norms in the audit process.

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The Economic Offence Wing of Mumbai police arrested two auditors of PMC bank on Monday (Nov 11) for negligence and flouting norms in the audit process.

The two chartered accountants are Jayesh Shah and Ketan Lakdawala and they had served as statutory auditors of the bank when the scam occurred. As per the police, they have played a key role in covering up the irregularities involving some top officials of the bank. Both of them would be presented in front of the court on Wednesday.

They were earlier called in for questioning and as they failed to give convincing replies to the police’s questions and their role as the auditors. Hence, they have now put under arrest.

The police so far arrested five persons, including promoters of the HDIL and top officials of the PMC Bank. So far eight people who had account in the scam-hit bank have lost their life.

Mumbai-based Punjab & Maharashtra Cooperative Bank (PMC) has been under regulatory restriction under Section 35A of B R Act by RBI for a period of six months due to irregularities disclosed to Reserve Bank of India (RBI). These restrictions were imposed on 23rd September and with the operational restriction in place, PMC bank – the urban co-operative bank will not be able to issue fresh loans, accept fresh deposits or borrow funds for the next six months. The account holders of the bank have been protesting against the restrictions for a while now. Initially, the withdrawal cap of Rs 1000 was imposed which has now been relaxed to Rs 50,000 and in case of a medical emergency, people can withdraw a further Rs 50,000.

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