PMC Bank scam: ED raids premises allegedly linked to MVA ally Hitendra Thakur

In a big development on Friday, the ED raided some premises allegedly linked to Bahujan Vikas Aghadi president and MLA Hitendra Thakur in connection with its money laundering probe in the PMC Bank scam case. Searches were carried out at least 5 premises of the Viva group linked to the Thakur family in the Vasai-Virar area of the Palghar district and Mumbai. As per sources, the transfer of money from the Housing Development and Infrastructure Limited (HDIL) and some others to the Viva group has come under the scanner.

Incidentally, Thakur's party has extended support to the Maha Vikas Aghadi government led by Maharashtra CM Uddhav Thackeray. In the 2019 Assembly election, BVA's Hitendra Thakur, Kshitij Thakur and Rajesh Patil won from the Vasai, Nalasopara and Boisar constituency respectively. The ED has also alleged a money trail between Praveen Raut and the Thakur family.

Read: HC Pulls Up RBI For Leaving It To PMC Bank To Decide Depositors Requests For Money In Emergencies

Sanjay Raut's wife appears before ED

On January 4, Shiv Sena MP Sanjay Raut's wife Varsha Raut appeared before the ED in connection with the PMC Bank scam investigation. Earlier, she had skipped the ED summons twice. This development came two days after the agency attached Pravin Raut's properties worth Rs.72 crore. According to the ED, he siphoned off Rs.95 crore through the illegally availed loans by Housing Development and Infrastructure Limited from PMC Bank in "conspiracy and connivance" with various persons. 

Mentioning that he paid Rs.1.6 crore to his wife Madhuri Raut from the "proceeds of crime", it added that she transferred Rs.55 lakh out of the aforesaid money to Sena MP Sanjay Raut's wife Varsha as an interest-free loan. Claiming that this amount was used for the purchase of a flat in Dadar East, Mumbai, the agency alleged that Varsha Raut and Madhuri Raut are partners in M/s. Avani Construction. Moreover, Varsha Raut is yet to repay a loan of Rs.12 lakh allegedly received from this entity. However, Sena parliamentarian Sanjay Raut stated that his family's name was being "mischievously linked' to the PMC Bank scam. 

Read: Initial Response Looks 'positive' For PMC Bank Resolution, Says RBI Governor

What is the PMC Bank 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. This caused a loss of approximately Rs.4,355 crore.

Several sections of the Indian Penal Code (IPC) such as criminal breach of trust, cheating, and forgery have been invoked against the accused. Besides HDIL promoters Sarang and Rakesh Wadhawan, the former Managing Director Joy Thomas and ex-Chairman Waryam Singh were arrested and sent to police custody. Out of 44 accounts, a total of 10 were linked to HDIL.

These included the personal bank accounts of the accused. The RBI appointed former Union Bank of India executive A K Dixit as the new administrator of PMC Bank. In another letdown for the depositors, India's Central bank has extended the moratorium on the PMC Bank till March 31, 2021. Until now, the bank has received at least 4 Expressions of Interest (EoI) for investment or equity participation in its reconstruction.

Read: PMC Bank Scam: Arrested Auditor Seeks Bail