I'm responsible for PMC mess, ready to face consequences, says former MD of PMC Bank Joy Thomas

Updated: Oct 12, 2019, 08:27 IST | Faizan Khan | Mumbai

Former MD of PMC Bank Joy Thomas tells EOW that when things went out of control, he took the wrong way to ensure the bank survived

Joy Thomas. File pic
Joy Thomas. File pic

Coming out with a confessional statement before the Economic Offences Wing (EOW), former MD of PMC Bank Joy Thomas said that he was responsible for the crisis that the bank is currently facing and was prepared to face the consequences. He further said that he had been hiding everything since 2013, when the Wadhawans started defaulting on payments, as he had too much faith in them and thought they would repay the money.

According to sources, Thomas also kept the auditors and his subordinates in the dark by creating 21,049 fake accounts on an excel sheet and not mentioning anything in the operating system. It had taken him three months to create all of it and keep it a secret.

'He fell into a trap'
Confirming to mid-day that Thomas has taken responsibility for all the irregularities, a source from the investigating agency said, "He kept trusting the Wadhawans hoping that they will repay the money just the way they were doing earlier. But he fell into the trap and when things went out of his control, he took the wrong way to ensure the bank survived."

The Wadhawans had taken Rs 2,430 crore from the bank, out of which only R70-75 crore was taken as loan without security. The rest was borrowed via overdraft facility. According to sources, only after 2017 the bank started asking for security from the Wadhawans. Initially they had given property worth R3,515 crore as security and later gave an additional R2,500 crore as well. "The bank can repay the depositors by auctioning the property. The investigating agency had an oral communication with the RBI for selling off these property," a source said.

Depositors' money
Meanwhile, the Wadhawans have also told the EOW that they were ready to repay the amount by selling the property that have not been attached by ED and had no issues if the bank wanted to sell off the mortgaged property to pay the depositors. "The HDIL group is also looking at selling off whatever property they have, which includes bungalows, private jets and a yacht. Even the investigating agency have been informed about their plans," a source added. According to sources, the Wadhawans have total moveable and immoveable property worth Rs 8,000 crore.

Requesting anonymity, an EOW officer said, "Investigation is underway. We are waiting for audit reports from RBI and forensic audit reports as well. We are trying to get the depositors' money as soon as possible."

Deewan Bungalow in Vasai East
Deewan Bungalow in Vasai East

ED attaches property worth Rs 5,000 crore

The Enforcement Directorate (ED) probing the money laundering angle in the PMC Bank fraud case, has attached moveable and immoveable properties of the Wadhawans worth Rs 5,000 crore. On Friday itself, the agency attached a land bank from Vasai to Palghar measuring 2,100 acres worth Rs 3,500 crore. Whereas, on Thursday, the agency attached the Deewan Bungalow in Vasai East spread over 5 acres, the estimated value of which is around R60 to 70 crore.

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