HDIL directors arrested, assets worth Rs 3,500 crore attached in PMC Bank case

Mumbai: Housing Development Infrastructure Limited (HDIL) Directors, Sarang Wadhawan and Rakesh Wadhwan, accused of loan default, in Punjab and Maharashtra Cooperative (PMC) Bank case have been arrested on Thursday by Economic Offence Wing. HDIL's assets worth Rs 3,500 crore attached.

It can be noted that RBI had put PMC Bank strict restrictions including limiting withdrawals at Rs 10,000 and banning the bank from any lending activities for the next six months.

The whistleblower report had detailed the massive misreporting of NPAs by the bank, primarily because of its huge exposure to crippled developer HDIL that owes around Rs 6,500 crore to the bank-as much as 73 per cent of its total loan book--as per the whistleblower and also its suspended MD Joy Thomas' admission to the RBI.

More details awaited.