Audit findings indict PMC Bank directors for fraud

Shiv Kumar

Tribune News Service

Mumbai, November 1

 

A forensic audit ordered on the books of the troubled Punjab and Maharashtra Co-operative (PMC) bank has indicted at least nine directors who were part of its 14-member board, according to sources here.

 

While the directors who were on the loans committee of the bank have been found guilty of clearing loans to the troubled Housing Development and Infrastructure Ltd (HDIL) without adequate checks and balances, others have been found guilty of turning a blind eye to the dealings of their colleagues.

 

So far, Mumbai Police’s Economic Offences Wing has arrested PMC Bank Chairman Waryam Singh, Managing

 

Director Joy Thomas and director Surjit Singh Arora, while others who were on the bank’s board have been summoned for questioning. Daljit Singh Bal, another director who was on the loans committee, and another director Gurnam Singh Hothi have so far not responded to the summons, according to EOW officials.

 

Police sources refused to comment on the individual roles of the directors of the PMC Bank in the scam which has been uncovered by the audit. 

 

“The findings of the forensic audit are provisional. The final report will take some time,”a police source said.

PMC Bank’s administrator, who took charge of PMC Bank on the orders of the Reserve Bank of India after the scam came to light, appointed Grant and Thornton to conduct a forensic audit of bank’s books on the advice of the EOW.

 

Sources in the EOW say PMC Bank officials will be questioned afresh on the basis of the provisional findings of the auditor.

 

Meanwhile, the RBI has appointed experts to value the properties belonging to HDIL which were mortgaged with PMC Bank. After ascertaining the value of the properties, the central bank will begin the process of auctioning them under the SARFAESI Act. The proceeds will be used to pay the depositors of PMC Bank, according to sources. 

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