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PMC Bank MD Joy Thomas arrested

Economic Crimes Branch took action against the Managing Director

|| Manoj  Ray

Economic Offenses Wing of Mumbai Police has taken custody of the PMC bank’s Managing Director Joy Thomas on Friday in the PMC Bank scam case. The Public Relations Officer of Mumbai Police said that Thomas, the suspended MD of the bank, had been missing for the last few days. Now the police will now take them into custody and interrogate them in this matter.

The Apex Bank(RBI) imposed a 6-month ban on the bank last week after the huge scam surfaced. According to the report, the bank incurred a loss of Rs 4355 crore due to management irregularities. The ED has also initiated an investigation against the HDIL company. As the bank gave this company a loan of Rs 6500 crore.

PMC has 137 branches in 7 states of India.

Punjab and Maharashtra Co-operative Bank (PMC) has opened 21 thousand fake accounts to suppress the loan amount information. News agency Reuters had informed that this was revealed in the FIR registered against the PMC Bank.

The bank management has been accused of concealing the NPA information and distributing debt against the rules.


According to the FIR, PMC  has given 44 loans to a real estate group and its companies. The bank management continued to inform its financial condition as  well, but the reality was different.

The FIR has names of other officials, including PMC chairman Varyam Singh and suspended MD Joy Thomas. It also names bankrupt company Housing Development and Infrastructure Limited (HDIL) and its former officers Sarang Wadhawan and Rakesh Wadhawan.

All were given loan by PMC out of strictures as per RBI guidelines.


Expect to complete investigation in next 2 months

According to media reports, PMC granted a loan of Rs 6,500 crore to HDIL. This is 73% of the bank’s total loan amount of Rs 8,880 crore. This is much higher than the limit set by the RBI for lending to any single company. A government official said last week that the Serious Fraud Investigation Office (SFIO) will investigate the role of HDIL in the PMC case, according to Reuters. The investigation is expected to be completed in the next 2 months.


(The Writer is a Qualified Cost Accountant)

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