PMC Bank Crisis: ED Files Case Against Officials, Carries Out Raids

General News

Amid the PMC Bank crisis, Enforcement Directorate filed an ECIR against the bank officials in the fraud. Raids are being conducted in six locations in Mumbai

Written By Monica Aggarwal | Mumbai | Updated On:

In a major development amid the Punjab and Maharashtra Cooperative (PMC) Bank crisis, the Enforcement Directorate on Friday filed an Enforcement Case Information Report (ECIR) in the bank fraud, after taking cognisance of the FIR filed by Mumbai Police's Economic Offences Wing (EOW). In the FIR, the ED has named the PMC board members and HDIL (Housing Development and Infrastructure Limited) promoters as accused. Amid the crackdown, the ED officials are searching six locations in Mumbai and adjoining areas in the money-laundering case. 

READ | ICAI consults RBI to check role of auditors in PMC Bank crisis

HDIL directors arrested

This development has come a day after the Mumbai Police's EOW arrested HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan. As per sources,  property worth Rs 3500 Crores was also seized by the police. On Monday, the EOW had registered an FIR against the senior officials of PMC Bank and HDIL in connection with a fraud of over Rs 4,355 crores. Police stated that a special investigation team has been formed to probe the matter. According to the police, PMC Bank officials gave loans to HDIL between the year 2008 and August 2019, despite them not paying the previous loans. The FIR has been registered on the complaint given by Jasbir Singh Matta, who was authorized by RBI administrator with Mumbai Police

READ | Mumbai Police registers FIR against officials of PMC Bank and HDIL

RBI extends limit

On Thursday, the RBI enhanced the withdrawal limit for the depositors of PMC bank Ltd to Rs 25,000 per account from 10,000, which was extended earlier. The RBI had capped withdrawal limit at Rs 1,000, but late, it increased it to Rs 10,000 per account. In a statement released by the bank, the relaxation in withdrawal amount will help depositors to withdraw their entire account balance. It also stated that the Reserve Bank is monitoring the position of the bank and will continue to take the necessary steps in the interest of depositors.

READ | Anurag Thakur calls the PMC crisis an 'eye-opener' for banking sector

READ | PMC Bank Crisis: HDIL directors arrested by Mumbai Police's EOW wing

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