More arrests in PMC Bank scam case, 3 directors held by Mumbai Police

The Economic Offences Wing (EOW) of Mumbai Police on Tuesday arrested three more people in connection with the Punjab & Maharashtra Cooperative (PMC) Bank scam case. 

Police is investigating the alleged Rs 4,355 crore fraud which has put savings of thousands of depositors in jeopardy. The Enforcement Directorate is also investigating the case under the Prevention of Money Laundering (PMLA) Act. 

On Tuesday, 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 quoted an official as saying. 

They will be produced before a court in Mumbai on Wednesday.

The official said that Mookhey was also a member of the bank's audit committee since 2005. Bavisi was a member of its loans and advances committee since 2011. PTI reported that Bane was a member of the loan recovery committee from 2010 to 2015, and of loans and advances committee since 2015.

Earlier, former PMC Bank director S Surjit Singh Arora, former chairman Waryam Singh, and former Managing Director Joy Thomas were arrested. 

HDIL directors Rakesh and Sarang Wadhawan were also arrested and their properties were raided by the ED in connection with the scam. 

Last month, the 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.