Thursday (October 3): Executive chairman of Housing Development and Infrastructure Limited (HDIL) Rakesh Wadhawan, vice chairman and managing director of the company Sarang Wadhawan were arrested today by the Economic Offence Wing (EOW) of Mumbai Police in connection with the collapse of the Punjab and Maharashtra Cooperative Bank (PMC).
Properties worth Rs 3,500 crore of HDIL were also frozen by the EOW, an official said, PTI reported.
The arrests were made three days after an FIR was registered and a Look Out Notice was issued against 17 persons, including the father-son duo, on the basis of a complaint by the Reserve Bank of India.
The RBI had stepped in and put restrictions on withdrawals after the crisis at the bank came to light last week owing mainly to massive non-performing assets (NPA) that were under-reported.
The bank allegedly violated RBI norms by extending loans to HDIL beyond permissible limits. An SIT has also been constituted to probe the matter and the losses have been pegged at Rs 4,355 crore, news agency PTI had reported.
Last week, the central bank had extended relaxations to PMC account holders to withdraw Rs 10,000. The bank, spread over five states, has 137 branches.
[…] HDIL promoters Rakesh & Sarang Wadhawan arrested in connection with PMC bank episode […]