PMC bank scam: Deposits without cheques and loans without papers

Waryam Singh and Joy Thomas

More skeletons have tumbled out of the PMC Bank cupboard with the forensic audit report of the bank establishing financial transactions between PMC directors and their relatives in HDIL Group. The report states from 2008 to 2019, Joy Thomas (ex-MD of PMC), Waryam Singh (former chairman of PMC and HDIL director), Surjit Singh Arora (ex-director PMC), Daljit Singh Bal and Dr Parmeet Sodhi (both ex-directors of PMC) received around R10 cr from HDIL.

The report also mentions that from 2008-19, relatives of Waryam Singh, Daljit Singh Bal, Surjit Arora, Jasvinder Banwait (PMC director) received more than R6 crore from HDIL.
The forensic audit by Grant Thornton India also shows that RBI in its 2007 inspection report, highlighted that PMC was extending unsecured loans to HDIL. RBI gave the report to PMC Bank but the bank did not do anything regarding the report. The inspection report said that the bank granted unsecured loans to HDIL.

Surjit Singh Arora

In an affidavit filed by RBI last month in Bombay High Court, RBI said that because of fraudulent data given by the bank, RBI could not find out irregularities. The forensic audit report also found an e-mail exchange among PMC officials regarding the irregularities. It is mentioned in the exchange that Waryam Singh's cheque amounts used to get cleared despite him never depositing any physical cheque to the bank.

Unauthorised cheques of HDIL used to be cleared by the bank. Advance loans were granted to HDIL without receiving critical documents. Preferential treatment was given to directors like Singh and others. Backdated board resolutions used to be done for HDIL loans as well, the report stated. This forensic audit report will be a crucial part of the chargesheet which EOW is likely to file by the end of this month.

Daljit Singh Bal

HDIL promoters Rakesh Wadhawan and his son Sarang were booked in connection with the scam in October this year. In attaching the properties of Wadhawans, EOW and ED has provisionally attached land parcel worth R2,500 crore. The 842-acre land parcel is in Palghar and 600 acres of it has a clear title.

Customers still at receiving end
On September 23, a restriction was imposed on the bank by RBI regarding withdrawal for its customers. This move has resulted into lakhs of depositors being deprived access to their own hard-earned money. Huge unsecured loans granted to HDIL and Wadhawans was the major reason which broke the spine of the bank, the report has highlighted. The R4,355-crore scam is being investigated by EOW and ED.

Rs 10cr
Amount bank directors received from HDIL over a decade

842
Area in acres of Wadhawans's land in Palghar that is attached

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