PMC Bank Crisis: Third auditor arrested

While there are number of arrests being made in regards to the PMC case, the account holders have no clarity on when they will be able to access their hard earned money

PMC Bank Crisis: Third auditor arrested

The police have arrested the third auditor in connection with the PMC case. Anita Kirdat (48) was questioned and later arrested on Wednesday (Nov 13). According to the police Kirdat is accused of overlooking irregularities in the bank. She is also being booked for not disclosing the non-performing assets (NPA) of real estate developer HDIL’s defaulter accounts in the audit reports.

Just on Monday (Nov 11), the Economic Offence Wing of Mumbai police arrested two auditors, Jayesh Shah and Ketan Lakdawala of PMC bank for negligence and flouting norms in the audit process. The duo had served as statutory auditors of the bank when the scam occurred. Police claims that 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.

Apart from the auditors, the police have also arrested the promoters of the HDIL and top officials of the PMC Bank. So far eight people who had an 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.