Ex-PMC director Surjit Singh Arora cleared majority of HDIL's loans

PMC Bank's former director Surjit Singh Arora

Punjab and Maharashtra Cooperative (PMC) Bank's former director Surjit Singh Arora, who was on the loan committee of the bank, had cleared majority loan proposals of real estate firm HDIL, the Economic Offences Wing (EOW) of Mumbai police revealed at the Killa court on Tuesday.

The EOW on Tuesday produced Arora, arrested on October 16, in court for further custody and was granted the same until October 24. The agency also told the court that about 100 major loan accounts, including that of Housing Development and Infrastructure Limited, have been declared non-performing assets (NPAs).

"Arora, who has been associated with the bank since 1999, expanded his business when the bank fraud was on its peak. It is important to examine if the accused utilised the proceeds of this fraud," officers told the court.

However, Arora's lawyer said his client was innocent. "No transactions have been found in the bank account statements from 2008-2019 and business account details shared with the EOW," the lawyer said. "My client's signature has not been found on any of the documents related to loan transaction with HDIL," he told the court. He added that Arora ensured that Rs 3,500 crore in form of property was taken from HDIL as security as against the rule of taking only Rs 1,750 crore.

"HDIL properties can be auctioned under SARFAESI act, but it was not done. If that would have been done, depositors would have got their money," the lawyer added.

The EOW, however, said that Arora is aware of business activities of HDIL but is not divulging the details. The agency also wants to extract the whereabouts of Daljit Singh Bal, another member of the loan panel who is on the run, from Arora.

The Enforcement Directorate, which is investigating the money laundering case in connection with PMC Bank fraud, also secured further custody of Sarang and Rakesh Wadhawan till October 24. The ED found that Wadhawans bought more than 50 properties from the proceeds of crime. Some documents have also been seized, which that Wadhawans sold some of their properties.

Meanwhile, a fresh protest was organsied by hundreds of depositors at Azaad Maidan on Tuesday.

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