The Economic Offences Wing (EOW) of Mumbai Police on Monday registered an FIR against the senior officials of HDIL and PMC bank in connection with a fraud of over Rs 4,355 crores.
“EOW has formed a special investigation team for the probe. The FIR has been registered on the complaint given by one Jasbir Singh Matta, who was authorized by RBI administrator with Mumbai Police,” police said in a press note. According to the police, PMC bank officials gave loans to HDIL between the year 2008 and August 2019 despite no repayment of the previous loans.
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). Suspended MD Joy Thomas had on Friday admitted that the bank did not report the financial exposure to the Reserve Bank of India (RBI) for over six years.
RBI had, on Thursday, increased the withdrawal limit from Rs 1,000 to 10,000 after several bank account holders protested against the move outside the Sion branch in Mumbai. Last week, the central bank had restricted activities of PMC Bank for six months citing major financial irregularities, failure of internal control and under-reporting of its exposures under various off-site surveillance reports.
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