PMC Bank saga: Whistleblower warned RBI about gigantic fraud in 2011
Years before the Punjab and Maharashtra Co-operative Bank (PMC) Bank scam was unearthed, a whistle-blower had warned the Reserve Bank of India (RBI) about a gigantic fraud, a report said. The whistleblower had informed RBI about the fiscal deviation from the corporate governance practices and the ongoing financial irregularities in the bank way back in 2011.
Years before the Punjab and Maharashtra Co-operative Bank (PMC) Bank scam was unearthed, a whistleblower had warned the Reserve Bank of India (RBI) about a gigantic fraud, a report said.
The whistleblower had informed RBI about the fiscal deviation from the corporate governance practices and the ongoing financial irregularities in the bank way back in 2011.
Moneycontrol has accessed all the documents that show correspondence between the whistleblower and the RBI.
In a letter to the central bank, the whistleblower said, the PMC Bank issued fresh loans to non performing asset (NPA) accounts in the name of relatives of directors or partners of borrower NPA company. These loans were closed by diverting fresh loans towards the settlement of NPA.
According to the whistleblower, companies like Housing Development and Infrastructure Ltd (HDIL) and Dewan Housing Finance Corporation (DHFL) were used to manipulate the time and demand liabilities of PMC Bank. In return for this favour, all the black money of HDIL and group companies was received by the bank and shown as deposits.
Watch the accompanying video of Moneycontrol’s Dinesh Unnikrishnan for more details.
(Edited by : Kanishka Sarkar)
First Published: Jun 29, 2021 1:35 PM IST
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