Thomas had on September 28 admitted that the bank did not report the financial exposure to the Reserve Bank of India (RBI) for over six years.
The Mumbai Police on Friday arrested Joy Thomas, suspended Managing Director of Punjab and Maharashtra Co-operative (PMC) Bank, in the alleged loan scam, a day after two promoters of debt-ridden Housing Development and Infrastructure Ltd (HDIL) were held.
Thomas was arrested by the Economic Offences Wing (EOW) of Mumbai Police. Thomas had on September 28 admitted that the bank did not report the financial exposure to the Reserve Bank of India (RBI) for over six years.
"Joy Thomas, Managing Director of PMC Bank who was missing has been arrested today. He is being interrogated and further investigation is underway," Pranay Ashok, Public Relation Officer of Mumbai Police, said.
This comes on the day the Enforcement Directorate raided six locations in Mumbai after registering an Enforcement Case Investigation Report (ECIR) to probe erring bank officials on charges of money laundering in connection with the case.
The case was registered on the basis of an FIR filed by the EOW of Mumbai Police under the Prevention of Money Laundering Act (PMLA), the ED officials said on Friday.
On September 30, EOW of Mumbai Police had registered an FIR against senior officials of HDIL and PMC Bank in connection with a fraud of over Rs 4,355 crores.
The FIR was registered under Sections 409 (criminal breach of trust), 420 (cheating), 465 (forgery), 466 (forgery of record of court or public register), 471 (using a forged document as genuine) and 120B (criminal conspiracy).
According to the police, PMC bank officials gave loans to HDIL between 2008 and 2019 despite no repayment of the previous loans.
Mumbai Police's EOW on Thursday made its first arrest in connection with the loan fraud in PMC Bank case which has led to restrictions on withdrawals for bank customers.
Sarang Wadhawan and Rakesh Wadhwan, both directors of HDIL, are accused of loan default in connection with the PMC Bank case.
The father-son duo were remanded to police custody till October 9 by the Esplanade Court on Friday.
Ten of 44 accounts which led to PMC Bank falling in debt were linked to HDIL and Wadhnwans. Their personal accounts were among these ten accounts.
The loan default case came to light after the RBI imposed restrictions on withdrawals from the bank on September 23. In directions issued to the bank, the RBI said that depositors will be allowed to withdraw a sum not exceeding Rs 1,000 of the total balance in every bank account.
After outrage from angry customers, RBI increased the withdrawal limit from Rs 1,000 to 10,000 on September 26 but other restrictions remained in place. The limit was further relaxed to Rs 25,000 on Thursday.
(With ANI inputs)
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