Former BJP MLA’s son held in PMC Bank scam

Mumbai, November 16

One of the directors of the scam-hit Punjab and Maharashtra Cooperative (PMC) Bank, Rajneet Singh, son of former BJP MLA Sardar Tara Singh, was arrested today by the Mumbai Police's Economic Offences Wing (EOW).

Rajneet was taken into custody in the evening at the EOW office as investigators found his replies on the loan granted to the realty group HDIL, which has failed to repay, unsatisfactory and unconvincing, according to an official. Besides being a director, Rajneet is a member of the loan recovery committee of the bank.

He was questioned over the loan provided by the bank to HDIL group companies and the steps taken, if any, to recover the pending dues, the official said.

“Rajneet provided unsatisfactory and unconvincing explanations, which hints at his likely role in the scam,” he said, maintaining that Rajneet will be produced before a holiday court and his police remand will be sought.

So far, nine persons have been arrested in connection with the alleged Rs 4,355-crore scam, including three top bank officials and two promoters of HDIL — Rakesh and Sarang Wadhawan — and auditors.

The EOW suspects a nexus between some of the accused and realty group HDIL, whose mammoth loan defaults are said to have caused a liquidity crisis at the bank, leading to appointment of administrator by RBI and restrictions on withdrawal of funds.

The EOW had earlier told a sessions court that prima facie a nexus between some of the accused and HDIL group companies has been made out by the investigators who suspected a "deep-rooted conspiracy". — PTI