PMC Bank Scam: ED files chargesheet, names Wadhwans, two others as accused

In another development pertaining to the Punjab and Maharashtra Cooperative (PMC) Bank scam, the Enforcement Directorate (ED) on Monday filed a chargesheet and said that Housing Development Infrastructure Ltd (HDIL) promoters Rakesh and Sarang Wadhawan laundered money using bank funds.

The chargesheet was submitted before a special court set up under the Prevention of Money Laundering Act (PMLA).

The probe agency has also named former Managing Director of PMC Bank, Joy Thomas, and former PMC Bank Chairman Waryam Singh as accused in the scam. It also provided details of property owned by Waryam in the US.

According to the 7000-page chargesheet, bank transactions done by Wadhawan, who is a key accused in the case are important evidence. The agency further said that some employees of the PMC Bank were involved in the irregularities.

The Wadhawans were first arrested by Economic Offences Wing (EOW) of Mumbai Police and were taken into custody by the ED in October 2019. Earlier in December, three directors of PMC Bank - Jagdish Mookhey, Mukti Bavisi and Trupti Bane - were arrested following extensive interrogation in connection with credit facilities provided by the bank to Housing Development and Infrastructure Limited (HDIL) and its group companies, PTI had quoted an official as saying.

The Reserve Bank of India (RBI) in September restricted the activities of the PMC Bank for six months, imposing a limit on withdrawals, asked it not to grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits.