pmc fraud

Jan 18, 2020, 11.11 PM IST

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PMC FRAUD

PMC Bank scam: SC stays HC order allowing shifting of HDIL promoters from jail to their residence

The Supreme Court on Thursday partially stayed the Bombay High Court order allowing shifting of HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, accused in the multi-crore Punjab & Maharashtra Cooperative (PMC) Bank scam case, from Mumbai's Arthur Road Jail to their residence.

PMC Bank scam: HC sets up panel for sale of HDIL assets

The court said the committee shall first value and sell the encumbered properties of ...

Pawar meets Anurag Thakur to discuss revival of scam-hit PMC Bank

The PMC Bank has been put under restrictions by the RBI, after a multi-cror...

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  • UCBs cannot raise capital at a premium as their private sector counterparts do.

    The whistleblower, who was a senior bank official, was angry about RBI being systematically kept in the dark.

    The police are set to also file in a court formal charges against PMC Bank’s erstwhile chairman Waryam Singh, former managing director Joy Thomas and SS Arora who was a director at the bank, in the alleged over Rs 6,300 crore fraud. The EOW’s probe has found that the bank had sanctioned loans to 21 companies floated by the real estate developer without any requisite paperwork.

    The fraud could have been prevented had the board acted on the central bank's findings, said officials who are aware of the investigations into the bank fraud and the contents of the forensic report prepared by Grant Thornton India.

    The court also said that the assets of HDIL and its promoters Rakesh Wadhawan and Sarang Wadhawan must be sold at the earliest in the interest of the PMC Bank and its depositors. A division bench of Justices Ranjit More and S P Tavade was hearing a PIL filed by an advocate, Sarosh Damania, seeking directions for expeditious disposal of HDIL Group assets.

    Players see up to 25% growth in forensic business in past 3 years even as strict regulatory action hits audit operations.

    In an over 7,000-page prosecution complaint, which is equivalent to a charge sheet, it filed in a Mumbai court on Monday, the central agency has accused the father-son duo of using the money for either purchasing real estate or for the “evergreening” of other loans, officials privy to the matter said.

    According to the police, Rakesh and Sarang Wadhawan of real estate firm HDIL, who are among the accused in the case, had allegedly tampered with the bank’s core banking solution to operate 44 password-protected accounts. Overdrafts disbursed by the bank to these accounts eventually made it to the accounts held by HDIL or its promoters, the police had alleged.

    New policy measures were announced on Thursday to strengthen the regulatory framework at the UCBs.

    As per Mumbai Police, 23 PMC bankers and clients took Rs 70 crore a week before RBI's clampdown.

    ​​These ‘ghost accounts’ are suspected to have been operated by entities with the knowledge of arrested bank officials, sources said. These accounts allegedly belonged to the Abchal Group, loans to which have turned bad, saddling the bank with a Rs 300 crore liability. Not much information seems to be publicly available on the Abchal Group or its promoters.

    The government unveiled measures over the past few months aimed at improving liquidity in the system.

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