Suspended MD of PMC Bank, Joy Thomas arrested

Suspended MD of PMC Bank, Joy Thomas arrested

Agency News

The suspended Managing Director, Joy Thomas, of Punjab and Maharashtra (PMC) Bank has been arrested in an alleged Rs. 6,500 crore fraud case, sources in the Economic Offence Wing in Mumbai said.

The arrest of Joy Thomas took place a day after Rakesh Wadhawan and Sarang Wadhawan, senior executives at HDIL, were arrested. The agency conducted searches at six places in Mumbai and neighbouring areas linked to the former chairman of the bank and promoters of HDIL.

PMC Bank gave 75 per cent of its entire loan book to the now bankrupt HDIL. The two HDIL promoters allegedly created 21,000 fake accounts to camouflage the loans from PMC.

PMC Bank officials allegedly misled the RBI for over a decade from 2008 to August 2019. The fictitious loan accounts were not entered into the bank's core banking system - a factor key in the Rs. 14,000-crore fraud at Punjab National Bank that was uncovered in 2018.

The Reserve Bank of India on Thursday raised withdrawal limit for account holders of the stressed PMC Bank to Rs. 25,000 from earlier withdrawal limit of Rs. 10,000.

The Reserve Bank of India (RBI) last week moved to take charge of PMC, one of India's top five co-operative lenders with more than nine lakh depositors, and suspended Joy Thomas and the bank's board after uncovering lending irregularities.