Mumbai : EOW arrests two auditors in connection with PMC Bank scam

Mumbai (Maharashtra) [India], Nov 12 (ANI): The Economic Offences Wing (EOW) on Monday arrested two auditors in connection with PMC Bank scam and will produce them in Court today seeking their police remand. Earlier five accused have been arrested in the case.
"Jayesh Dhirajlal Sanghani and Ketan Pravinchand Lakdwala were called for investigation at office of the Economic Offences Wing, Mumbai, during the course of investigation their association with HDIL came into light and both couldn't provide convincing explanations regarding their alleged role as statutory auditors of PMC bank , hence both were arrested for further investigation," read a press note from EOW.
"Both accused will be produced tomorrow for availing police custody before ACMM Holiday Court, Esplanade, Mumbai. Further investigation of accused persons is in progress," it read.
In late September, the RBI had restricted activities of PMC Bank for six months and asked it not to grant or renew any loans and advances, make any investment or incur any liability, including borrower of funds and acceptance of fresh deposits.
The directions were necessitated on account of major financial irregularities, failure of internal control and systems of the bank and wrong or under-reporting of its exposures under various off-site surveillance reports.
The RBI later sacked the bank's board of directors under sub-sections 1 and 2 of section 36 AAA read with section 56 of the Banking Regulation Act 1949. The bank is now under the charge of an administrator.
PMC Bank is a multi-state scheduled urban cooperative bank with operations in Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh, and Madhya Pradesh. With a network of 137 branches, it ranks among the top 10 cooperative banks in the country. (ANI)