PMC Bank Fraud: Forensic Audit Reveals Rampant Violation of Rules; RBI Committee, ED, EOW To Sell HDIL Assets
The preliminary forensic audit report of Punjab and Maharashtra Cooperative Bank (PMC Bank) submitted by Grant Thornton, a leading auditor firm commissioned by the Reserve Bank of India (RBI), exposes rampant violation of loan sanctioning norms by the Bank. The economic offences wing (EOW) of Mumbai police had submitted the report to the court. The report also suggests that Housing Development Infrastructure Ltd (HDIL), and its promoters the Wadhawan family, obtained loans from the Bank without adequate security, say reports.
 
The size of the scam has gone up as a result. The preliminary report shows that PMC Bank never showed HDIL as a bad loan or non-performing asset (NPA) and the Bank created fictitious accounts to grant loans to the Wadhawan company. 
 
 
Separately, a report by Moneycontrol.com  says, the RBI, Enforcement Directorate (ED), EOW and administrator of PMC Bank have formed a coordination team to expedite action in this case.
 
"On Monday, RBI governor Shaktikanta Das, ED director Sanjay Kumar Mishra, Mumbai Police Commissioner Sanjay Barve and PMC Bank administrator JB Bhoria met at the RBI headquarters to discuss next steps in the case. After seeking court approval, the RBI will direct the PMC Bank administrator to begin the process of sale of assets under the SARFAESI Act," the report says.
 
Last week, the EOW arrested Rajneet Singh, son of Sardar Tara Sing, former member of legislative assembly (MLA) from Mulund in the PMC Bank fraud case. Rajneet Singh was director of PMC Bank before the RBI put restrictions on the lender. He was also on the recovery committee of the Bank.   
 
The EOW had also arrested Jayesh Sanghani and Ketan Lakdawala, the two auditors who did the statutory audit of fraud-hit PMC Bank. 
 
 Last month, the ED had seized and identified movable and immovable assets worth more than Rs3,830 crore owned by HDIL, the company directors and promoters, as well as official of PMC Bank and others related entities in the fraud case.
 
The PMC Bank has been put under restrictions by the RBI since September after an alleged Rs4,355 crore scam came to light, following which the deposit withdrawal was initially capped at Rs1,000, causing panic and distress among depositors. The withdrawal limit has been raised in a staggered manner to Rs50,000.
 
Founded in 1984 by S Gurcharan Singh Kochhar from a small room in Mumbai, the Bank had now grown to a network of 137 branches in six states and ranked among the top 10 cooperative banks in the country.
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    COMMENTS

    DeepakSB

    3 weeks ago

    Hindustan Times-Mumbai-20-Nov-2019-Page No.1-Headlines-at PMC,RBI confirms that Tempering of Core Banking system was done by some "BANK EMPLOYEES "

    Amarjit Singh

    3 weeks ago

    But Bank employees is good in services

    manojkamrarti

    3 weeks ago

    Special status to urban cooperative banks is like Section-370 of Jammu and Kashmir. No vital BR Act provisions apply to UCBs giving full freedom to commit scams.

    So GoI should immediately remove special status to UCBs to stop further scams by repealing corrupt sections, subsections inserted in 1984, 2013 by amending the Act.

    Nakul Kumar Reddy

    3 weeks ago

    First they have to sell their all assets,they will know the pain of public assets.

    Dr Benoy Kumar Chattapadhyaya

    3 weeks ago

    What about RBI? This Institutions also Frauder. They have Frauded me Rs.1,34,700 by RBI Official Mr. Sameer Singh Head Customer Consumer Forum RBI New Delhi for transferred of my Fund which is under Custody of RBI. Still it is pending they have not send my Fund nor Refund my money what ever I have send to RBI. Matter has been reported Governor RBI no action has been taken nor given any reply to me. It has been came through [email protected]

    REPLY

    Sucheta Dalal

    In Reply to Dr Benoy Kumar Chattapadhyaya 3 weeks ago

    Afraid you have been scammed by a digital fraud. RBI is a regulator and monetary authority and does not do any of the things you are accusing it of. Moreover the email you have mentioned is a fraudulent email. You need to file a police complaint. There is nothing like a "customer forum" of RBI in delhi. In fact, the RBI issues frequent warnings about the misuse of its name.

    DeepakSB

    3 weeks ago

    https://www.saraswatbank.com/content.aspx?id=Long-Term

    REPLY

    DeepakSB

    In Reply to DeepakSB 3 weeks ago

    Ms. Dalal.... Awaiting your comments and expert guidance on long term deposits issue. Thanks.

    DeepakSB

    3 weeks ago

    RBI has officially given licence to co-operative banks to loot and cheat its account holders.

    As of Nov 2019-PMC Bank scam and other co-operative bank scams are daily reported in press and media.

    (Pdf file attached-terms and conditions of Long Term Deposits -LTD-by Saraswat Bank-with permission of RBI).

    RBI link for long term deposits.

    https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=10487

    Its surprising that these LTDs are NOT covered by Bank Deposits Insurance scheme (DICGC).

    No loan/Overdraft/Premature withdrawal available till 7 years.

    If CO-Operative bank closes down/liquidated during tenure of 7 years of LTDs (long term deposits )-depositor will LOOSE ALL AMOUNT.
    🚒🚒 Can any Individual/Organization/Consumer Forum study these and file PIL to stop further cheating by co-operative banks of its account holders? 🚒🚒

    Nakul Kumar Reddy

    3 weeks ago

    Pmc bank total assets put in to auction.

    Turkish cybercriminals hack Tripura ATMs, steal huge cash
    After Assam, suspected cybercriminals from Turkey have stolen huge amounts of cash from ATMs through ATM-cloning devices installed in Tripura's capital Agartala, police said on Monday.
     
    According to the police, banks and other sources, over 60 bank customers of different banks mostly State Bank of India (SBI) during the past few days lost lakhs of rupees due to the fraudulent acts of the cybercriminals and ATM hackers.
     
    Tripura police's Cyber Crime wing Superintendent of Police Sharmistha Chakraborty said that as per their preliminary probe the Turkish nationals who had taken out lakhs of rupees of bank customers through the ATM-cloning devices in Guwahati in August are also involved in similar hacking in Agartala.
     
    "We are collecting complaints of bank customers from various police stations and different bank branches to gather the information and other details of stolen cash of many bank customers from ATMs through ATM-cloning devices," Chakraborty told IANS.
     
    She said according to their information available the suspected Turkish nationals after pilfering money from the several ATMs left Tripura for Kolkata.
     
    "Our probe is on. If necessary we would take help from other agencies of concerned states where similar crimes took place," the official added.
     
    According to local media reports, over Rs 80 lakhs of several customers were stolen from several ATMs during the past few days in Agartala.
     
    SBI's Regional Manager Dibyendu Chowdhury said that they have so far received complains from 45 customers that they lost their money due to the ATM hacking.
     
    Chowdhury said that the SBI has blocked a number of ATM and debit cards of its customers as precautionary measures.
     
    According to a cyber-technology expert, the ATM card cloning system comprises a spy camera, a memory card and a small data device to gather ATM and account details of bank customers. Recently, two Turkish nationals involved in the ATM hacking were arrested in Mumbai.
     
    Incidents of stealing money of a large number of bank customers from ATMs through ATM cloning devices took place in different parts of the country including Kolkata and Guwahati.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Deepak Narain

    3 weeks ago

    Hackers are always ahead of governments and other public institutions security personnel. It would be better, perhaps, if public authorities will employ them as handsomely paid guardians of public machinery like our own National Informatics Centre, etc.

    PMC Bank Fraud: EOW Conducts Search at Arrested Ex-director Rajneet Singh's Residence
    The Economic Offences Wing (EOW) of Mumbai police is conducting a search at the residence of Rajneet Singh, former director of Punjab and Maharashtra Cooperative (PMC) Bank. On Sunday, the Esplanade Court granted the police his custody till 25th November, following which the EOW carried out searches at Sion-based residence of Rajneet Singh. 
     
    Last week, Rajneet Singh was arrested by the EOW in connection with the Rs4,355 crore PMC Bank fraud. He is son of Sardar Tara Sing, former member of legislative assembly (MLA) from Mulund.  
     
    Rajneet Singh was director of PMC Bank before the Reserve Bank of India (RBI) put restrictions on the lender. He was also on the recovery committee of the Bank. 
     
    This is the ninth arrest in the case by police. 
     
    Last week, the EOW arrested Jayesh Sanghani and Ketan Lakdawala, the two auditors who did the statutory audit of fraud-hit PMC Bank.  
     
    In a statement, the police had said, "Jayesh Dhirajlal Sanghani and Ketan Pravinchand Lakdawala were called for investigation… during the course of investigation, their association with Housing Development Infrastructure Ltd (HDIL) came into light and both could not provide convincing explanation regarding their role as statutory auditors of PMC Bank. Hence both were arrested for further investigation..."
     
    Jayesh Sanghani is partner in Ashok Jayesh & Associates, while Ketan Lakdawala is partner in Lakdawala & Co. 
     
    Meanwhile, according to The Tribune, Daljit Singh Bal, an absconding director of fraud-hit PMC Bank, has been located in Amritsar in Punjab. Quoting sources, the report says, Mr Bal obtained anticipatory bail from a court in Amritsar on learning that a team from the EOW was on his way to nab him from the holy town. The local court granted him bail after Mr Bal gave an undertaking that he would surrender before the Mumbai police in a fortnight’s time. Mr Bal was on the loans committee at PMC Bank.
     
    The EOW is still trying to locate another director, Gurnam Singh Hoti, who too is believed to be holed up in Punjab. Mr Hoti is also trustee of several Sikh institutions in Mumbai and supposedly helped collect deposits for the Bank from them. 
     
    The report says that the EOW is also looking to extradite one director Dr Parmeet Sodhi, who is in Canada. Dr Sodhi too was on the loans and recovery committees of PMC Bank. In its application before the magistrate in Chandigarh, last week, the EOW had said Dr Sodhi was responsible for sanctioning loans and was one of the directors responsible for the Bank’s operations.
     
    Last month, the Enforcement Directorate (ED) had seized and identified movable and immovable assets worth more than Rs3,830 crore owned by HDIL, the company directors and promoters, as well as official of PMC Bank and others related entities in the fraud case.
     
    The PMC Bank has been put under restrictions by the RBI since September after an alleged Rs4,355 crore scam came to light, following which the deposit withdrawal was initially capped at Rs1,000, causing panic and distress among depositors. The withdrawal limit has been raised in a staggered manner to Rs50,000.
     
    Founded in 1984 by S Gurcharan Singh Kochhar, from a small room in Mumbai, the Bank had now grown to a network of 137 branches in six states and ranked among the top 10 cooperative banks in the country.
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    COMMENTS

    Nakul Kumar Reddy

    3 weeks ago

    All the team should be behind bars.

    Newme

    3 weeks ago

    In all financial scams behind the scene there would be politicians, mafias, godmen and actresses. Let\'s wait for all the characters to reveal themselves.

    Nakul Kumar Reddy

    3 weeks ago

    Super news

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