Mumbai: The Economic Offence Wing (EOW) of Mumbai Police will on Tuesday produce two auditors who were arrested for deliberately overlooking irregularities in Punjab and Maharashtra Cooperative (PMC) Bank before a local court.
The police arrested the auditors identified as Jayesh Sanghani and Ketan Lakdawala as a part of its investigation into ₹4,355 crore PMC Bank scam.
The duo is from an audit firm which was roped in by the bank to conduct routine audits. The police are probing if they received any kickbacks for overlooking the irregularities.
In September, the Reserve Bank of India (RBI) had restricted the activities of the PMC Bank for six months.
It asked the bank not to grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits after the alleged scam came to light.
The police have also arrested promoters of Housing Development and Infrastructure Limited (HDIL) and several PMC officials in connection with the scam.
Probing the scam, the EOW suspects a nexus between some of the accused and HDIL group companies.
According to investigators, a deep-rooted conspiracy caused loss of public funds.
The agency had said that six people have lost their lives due to loss of money and the public is protesting over the irregularities.
The police so far arrested five persons, including promoters of the HDIL and top officials of the PMC Bank.
The Punjab & Maharashtra Cooperative Bank has been put under restrictions by the Reserve Bank of India (RBI) following the unearthing of a Rs 4,355-crore scam.
Deposit withdrawals have been capped at Rs 40,000 over a six-month period, causing panic and distress among depositors.
