Mumbai police’s Economic Offences Wing filed FIR against HDIL, and Punjab & Maharashtra Cooperative (PMC) Bank officials, including suspended MD Joy Thomas in PMC bank fraud case. EOW has formed a Special Investigation Team (SIT) to probe the matter. The first information report (FIR) has been filed under sections 409 (criminal breach of trust by a public servant or banker), 420 (cheating), and 465, 466 and 471 (related to forgery) of the Indian Penal Code along with 120 (b) (criminal conspiracy).
FIR alleges possible fraud and wrongful loss of ₹4,355 crore and charges of cheating against HDIL.
Despite non-payment, the bank officials did not declare HDIL exposure as non-performing asset and intentionally hid the information about the same from RBI by creating fake loan record of smaller loan account, an official statement from the police said.
The development comes at a time when the lender’s suspended MD reportedly admitted to the RBI that the bank’s actual exposure to the bankrupt HDIL is over ₹6,500 crore — four times the regulatory cap or a whopping 73% of its entire assets of ₹8,880 crore.
The slum redevelopment focused Housing Development and Infrastructure or HDIL is in the bankruptcy court now after being hit by a severe cash crunch following the failure of some of its key projects in the city.
Source – LiveMint