PMC bank scam: Auditors appointed on orders of masterminds

Updated: Nov 13, 2019, 07:38 IST | Faizan Khan | Mumbai

EOW tells court, secures custody of Ketan Lakdawala, Javesh Sanghani till Nov 15

Depositors of the PMC Bank protest against the multi-crore scam. file pic
Depositors of the PMC Bank protest against the multi-crore scam. file pic

The Economic Offences Wing (EOW) of the Mumbai Police on Tuesday secured the custody of two auditors, who conducted audits when the alleged scam was committed at the Punjab & Maharashtra Co-operative Bank. A court has sent Ketan Pravinchand Lakdawala and Javesh Dhirailal Sanghani to EOW's custody till November 15.

During the hearing for custody, the EOW's Special Investigation Team told the court that the duo were associated with the bank for the PMC Bank for the 20 years and were appointed on the orders of the masterminds of the fraud.

PMC Bank former MD Joy Thomas, former chairman Waraym Singh, and HDIL promoters Rakesh Wadhwan and Sarang Wadhwan are believed to be the brains behind the multi-crore scam.

According to the EOW, Lakdawala and Sanghani audited and signed the financial statements of the PMC Bank when the fraud was committed. "It is necessary to interrogate them to understand if they acted as per the instructions of the key players of this fraud," the EOW said.

The agency also said the duo shielded the non-performing asset (NPA) accounts from the Reserve Bank of India's for a long time. Initial investigation have also revealed that the two auditors are business associates and have on many occasions passed on the responsibility of audits of the PMC Bank to each other.

The EOW also told the court that Institute of Chartered Accountants of India has also initiated disciplinary action against the duo.

The agency arrested Sanghani of Ashok and Jayesh Companies and Lakdawal of Lakadwala and Associates on Monday for deliberately overlooking the alleged irregularities involved in the bank's functioning.

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