PMC Bank scam: BJP ex-MLA’s son 9th person to be held in case

The bank allegedly violated RBI norms by extending loans to HDIL beyond permissible limits. (File)

THE ECONOMIC Offences Wing (EOW) of the Mumbai Police on Saturday arrested Rajneet Singh, the son of former BJP MLA Sardar Tara Singh, in connection with the Rs 4,355-crore PMC Bank scam case. Rajneet was on the board of directors of the bank and also a part of its loan recovery committee.

This is the ninth arrest in the case. Eight persons, including three auditors, former MD and chairman of the bank, as well as Housing Development and Infrastructure Limited (HDIL) promoters Rakesh and Sarang Wadhawan, have already been arrested in the case. The bank allegedly violated RBI norms by extending loans to HDIL beyond permissible limits.

“We have arrested Rajneet as he was part of the loan recovery committee. However, he could not recover the loans given to HDIL. We are also investigating if he had any links to HDIL,” DCP (EOW) Shrikant Paropkari said.

The police investigation into the scam, which led to restrictions being put on withdrawals by account holders, has found that in spite of being unable to repay loans, the bank kept on giving loans to HDIL and allegedly fudged their accounts in order to keep the losses under the radar of the RBI.

The police suspect some of the bank officials were hand-in-glove with HDIL and granted them loans in exchange for benefits. “We are awaiting forensic audit reports, which will make it clear if there was any quid pro quo between the Wadhawans and some of the bank employees,” an officer said.