PMC Bank Loan Scam: HDIL Promoters Wadhawans Arrested, RBI Raises Withdrawal Limit For PMC Bank Depositors To Rs 25,000 

The Economic Offences Wing of the Mumbai Police, on Thursday, arrested Sarang Wadhawan and Rakesh Wadhawan, promoters of Housing Development Infrastructure Limited, in connection with the Punjab and Maharashtra Cooperative Bank Ltd (PMC) Bank scandal.

Properties worth Rs 3,500 crore of HDIL have also been frozen by the EOW, he said. "We arrested the two directors of HDIL after a detailed interrogation," the official said.

According to the FIR, between 2008 and August 2019, HDIL Pvt Ltd had taken a loan from PMC Bank’s Bhandup branch, but the money was not returned. PMC Bank did not declare HDIL’s account as non-performing assets or notify the RBI.

PMC Bank used more than 21,000 fictitious accounts to hide loans it made in the latest banking fraud case to spook the country's depositors and investors.

DCP Pranay Ashok, spokesperson of Mumbai Police, said, “The Wadhwans were summoned to come for interrogation at the EOW office. At the time of interrogation, they were unable to give satisfactory and sufficient information, hence, they have been arrested. There will be further enquiry on the cheating case.”

Besides the Wadhwans, the FIR also named Joy Thomas, former Managing Director of PMC Bank, Waryam Singh, Chairman of the bank

In a relief to small depositors, the Reserve Bank of India on Thursday raised the withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to Rs 25,000 from Rs 10,000.

"The Reserve Bank of India again reviewed the bank's liquidity position and, with a view to reducing the hardship of the depositors, has decided to further enhance the limit for withdrawal to Rs 25,000.

"With the above relaxation, more than 70 per cent of the depositors of the bank will be able to withdraw their entire account balance. The Reserve Bank is monitoring the position of the bank and will continue to take necessary steps in the interest of depositors," the RBI said on Thursday.

The apex bank has also decided to appoint a committee of three members in terms of section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act 1949, to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd.