HDIL Father-Son Duo Arrested in PMC Fraud
Mumbai Mirror
Oct 4, 2019

Father son duo of the HDIL company have been arrested for the bank fraud involving the Punjab and Maharashtra Cooperative Bank (PMC)

On 3rd October, the Mumbai Police arrested HDIL’s Executive Chairman Rakesh Wadhawan of HDIL and his son Managing Director Sarang Wadhawan. They were arrested for bank fraud in which they defaulted on a loan of Rs 4,356 crore from Punjab and Maharashtra Cooperative Bank (PMC). RW & SW’s assets worth Rs 3,500 crore have been frozen by the Mumbai Police Economic Offences Wing (EOW). 

The Mumbai Police have also called the other Directors of HDIL for questioning. Once the police find proof that they were involved they will be arrested. They are now planning to arrest PMC Bank Chairman Waryam Singh and Managing Director Joy Thomas. An RBI Official said that officials of PMC Bank and HDIL both secretly worked together and gave loans to HDIL and other companies.PMC MD Joy Thomas said that he was being made the scapegoat for the entire situation. He has written a five page letter explaining all the details about how PMC Chairman and HDIL worked together to commit the fraud. He is going to submit this letter to the police and RBI. 

This fraud that made the lives of the common man very difficult. People have lakhs of rupees saved in PMC Bank. These are their life savings and they are afraid they will lose it all.Earlier the RBI had imposed a Rs 10,000 withdrawal limit but now it has been increased to Rs 25,000.