PMC bank scam: Police arrested former bank director

Reserve Bank's MPC to discuss inflation report on Nov 3

The Special Investigation Team of Mumbai Police’s Economic Offenses Wing (EOW) in the PMC Bank scam has arrested former PMC Bank Director Surjit Singh Arora on Wednesday after questioning him in connection with the scam. This is the fifth major arrest in the scam. Earlier, former PMC bank chairman Varyam Singh, managing director Joy Thomas and HDIL owners Rakesh and Sarang Wadhawan were arrested.

Apart from the directors of the bank, Arora has also been the head of the loan committee, officials said. We want to get detailed information about the loan disbursement process of the bank from them. He was questioned today about this.

A Mumbai court on Wednesday granted judicial custody to Housing Development Infrastructure Ltd (HDIL) chairman and managing director Rakesh Wadhawan and his son Sarang, besides former bank chairman Varyam Singh, in the Punjab and Maharashtra Cooperative (PMC) bank scam till October 23. During the court proceedings, several account holders of PMC Bank demonstrated outside the court and demanded to get their money back as soon as possible.

In the PMC Bank case, the police produced the three accused before the Metropolitan Magistrate SG Sheikh. Police custody of the three was ending on Wednesday. The court then sent the three to judicial custody till October 23. Wadhawan and his son were arrested on 3 October and Varyam Singh was arrested on 5 October on charges of involvement in a Rs 4,355 crore scam in PMC Bank.

The Economic Offenses Wing (EOW) of the Mumbai Police had earlier this month filed a lawsuit against Wadhawan and top officials of PMC Bank. In this connection, on Monday, EOW arrested Joy Thomas, former managing director of PMC Bank. Thomas’ police custody period ends on October 17. Thomas can also be produced in court on Thursday.


RBI has banned
The Reserve Bank of India (RBI) has imposed several restrictions on the bank after the scandal in PMC Bank was exposed. Under this, about 15 lakh customers are upset since the limit of withdrawal of funds up to Rs 40 thousand only in a period of six months from the bank was imposed. Earlier this limit was one thousand rupees, which was increased to 40 thousand rupees. Let us tell you that three account holders have died in the last 48 hours. Among them, two account holders had a heart attack while a 39-year-old woman committed suicide on Tuesday by a doctor.

Supreme Court hearing on 18
The case of ban on withdrawal of money in PMC bank has now reached the Supreme Court. This ban has affected millions of customers of the bank, whose money is stuck in the bank. The apex court has agreed for immediate hearing on the petition filed to take measures to ensure the interests of the customers of PMC Bank surrounded in the scam. The case will be heard on 18 October. BK Mishra, a resident of Delhi, has filed this petition.


In the petition, the Supreme Court has been requested to issue guidelines for the protection of banks and deposits in the event of financial crisis such as loss of citizens’ money due to the actions of some people. The petition has demanded a 100 percent insurance cover for 15 lakh account holders, expressing concern over the security. On Wednesday, a bench of Justices NV Raman, Justice R Subhash Reddy and Justice BR Gavai said that the petition would be heard on Friday.

Demand for lifting of ban
The petition said that to restore the confidence of the general public in cooperative banks, a high-powered committee should be constituted to examine the functioning of all cooperative banks and their operations.

Apart from this, it has also been requested to cancel the RBI notifications setting limits for withdrawal of deposits with PMC Bank.


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