What is PMC bank crisis:
It is alleged that HDIL, which is facing bankruptcy proceedings, and its group companies had taken huge loans from PMC Bank.
The FIR with Mumbai police was filed by by Jasbir Singh Matta, manager, Recovery Department, of PMC Bank.
It is alleged that as many as 21,049 fictitious bank accounts were allegedly created to hide the loans, which were disbursed in violation of RBI norms.
It is also alleged that HDIL accounted for nearly 73 per cent of the bank's total loans. Out of the Rs 4,355 crore of loans under the scanner, around Rs 2,146 crore were transferred to accounts held by the Wadhawans. An account belonging to Wadhawan had a balance of Rs 2,009 crore on August 31, 2019, according to the FIR.
During probe by the Reserve Bank of India, it has been found that directors of PMC Bank had replaced 44 suspicious loan accounts with 20,149 fictitious bank accounts whose individual balances were low.
The 44 borrower accounts were allegedly linked to HDIL were masked by tampering with bank software. The PMC Bank's Managing Director Joy Thomas was behind the masking the borrower account.
(With IANS inputs)
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