Police

Mumbai, October 2, 2019:

The Punjab and Maharashtra Co-operative Bank (PMC) has used over 21,000 fictitious accounts in order to conceal the loans it had sanctioned, as per a latest police complaint.

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The Economic Offences Wing (EOW) of Mumbai Police, reportedly, had lodged a complaint accusing PMC’s management of concealing non-performing assets (NPA) and disbursing loans leading to a loss of at least 43.55 billion rupees (USD 616.5 million).

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According to the complaint, the actual financial position of the bank was camouflaged and PMC deceivingly reflected a rosy picture of its financial parameters. It further added that the fictitious loan accounts were not updated into the bank’s core banking system, which is suspected to be a factor key in the 2018 Punjab National Bank scam worth $ 2 billion.

A single realty firm and its wings were the beneficiaries of the 44 fictitious loans, as per the complaint. Chairman Waryam Singh and its Managing Director Joy Thomas, along with other PMC officials have been accused in the police case. The charges against them are criminal breach of trust, forgery and falsification of records.

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The complaint has also Housing Development and Infrastructure Ltd, the bankrupt realty company, along with its former senior executives Sarang Wadhwan and Rakesh Wadhwan, the beneficiaries of the 44 fictitious loans.

Further investigation is going on in this case and a period of two months will be required to completely solve the matter, as per police.

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