PMC Bank Scam: Bombay High Court Orders House Arrest of Wadhawan Brothers, Forms 3-Member Panel to Recover Dues Payable by HDIL
Panicked customers outside a PMC Bank branch in Mumbai | (Photo Credits: PTI)

Mumbai, January 15: The Bombay High Court on Wednesday directed the Mumbai Police to shift Housing Development and Infrastructure Limited (HDIL) promoters Rakesh Wadhawan and Sarang Wadhawan from Arthur Road Jail to House arrest. Also, it appointed a 3-member committee headed by retired HC Judge S Radhakrishnan to expeditiously recover dues payable by HDIL to crisis-hit Punjab & Maharashtra Cooperative (PMC) Bank.

Announcing the verdict in the PMC bank Crisis case, the Bombay High Court constituted a three-member committee for disposal and distribution of HDIL assets among the PMC Bank clients. Already, Economic Offence Wing of Mumbai Police had seized properties of Thomas and Wadhawan brothers worth Rs 3,600 crores. PMC Bank Crisis: RBI's Move on Withdrawal Limit Reduces Outstanding Deposits by Only 10%, Clampdown Continues.

Earlier on Monday, NCP chief Sharad Pawar met Union Minister of State for Finance Anurag Singh Thakur to discuss possibilities of revival of the troubled Punjab & Maharashtra Cooperative (PMC) Bank. fter the meeting in Delhi, the Rajya Sabha member termed the discussion as "constructive".

As per the details from RBI the PMC bank masked 44 problematic loan accounts, including HDIL loan accounts, by tampering with its core banking system, and the accounts were accessible only to limited staff members. RBI in September discovered that the bank had allegedly created fictitious accounts to hide over Rs 6,700 crore in loans extended to the almost-bankrupt HDIL.

Following this, it imposed several restrictions on the PMC bank and restricted the transactions limit to Rs 1000, which was later increased to Rs 50,000. Probing the mater, EOW and he Enforcement Directorate have registered offences in the case. The EOW last month submitted a 32,000-page charge sheet against five persons in the multi-crore PMC Bank scam. The charge sheet includes the forensic audit report of PMC bank and documents of properties purchased by the accused bank officials with kickbacks received by them for giving undue favour to HDIL and the Wadhawans.