PMC Bank crisis: Former chairman Waryam Singh sent to police custody

The former chairman of the Punjab and Maharashtra Co-operative (PMC) bank Waryam Singh was sent to police custody on Sunday and he will be in police remand till October 9. On Saturday, he was arrested by the Economic Offences Wing (EOW) of the Mumbai police in relation to the Rs.4,355 crore scam. Subsequently, they presented him before the Esplanade Court. Earlier, the EOW froze the bank accounts of the former managing director of the PMC bank, Joy Thomas and he was sent to police custody till October 17. 

Read | Waryam Singh, Former Chairman Of PMC Bank, Arrested By Mumbai Police

'Surrendered on his own'

The investigating officer informed the court about the necessity to confront Singh with the accused as he was the chairman and the executive director of the Housing Development and Infrastructure Ltd (HDIL) at the same time. On the other hand, advocate Vibhav Krishna argued that his client Singh would merely sign the documents, which were approved by Thomas. Furthermore, he claimed that the accused had surrendered on his own.

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He said, "My client surrendered on his own. He wrote a letter also and informed in advance that he will surrender. It is wrongly being portrayed that he was arrested.” Krishna added, "Also, when the summons was issued for him dated October 1, no dates were mentioned when he was supposed to appear - my client's role was only 'title role'- decisions were taken by Joy Thomas. My client merely used to sign the documents. All the documents are already in the custody of RBI appointed administrator and EOW. Back then, when I was a chairman, then also I never had any access to any documents. I am no banker and I got my position because I was elected.” 

Read | Ex-MD Of PMC Bank Sent To Police Custody Till Oct 17

The scam 

The police registered a First Information Report (FIR) against the top officials of the PMC Bank and the promoters of the HDIL. According to the prosecution, the bank continued giving loans to the debt-ridden HDIL from 2008 to 2019 despite the previous loans not being repaid. Several sections of the Indian Penal Code (IPC) such as criminal breach of trust, cheating, and forgery have been invoked against the accused. Along with Thomas, the promoters of HDIL, Rakesh and Sarang Wadhwan were arrested and sent to police custody till October 9. Out of 44 accounts, a total of 10 were linked to HDIL. These included the personal bank accounts of the accused.  

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(With ANI inputs)