Mumbai Police EOW Arrests Two Auditors Jayesh Sanghani, Ketan Lakdwala In Connection With PMC Bank Fraud Case

The Economic Offences Wing (EOW) of the Mumbai police has arrested two auditors, namely Jayesh Dhirajlal Sanghani and Ketan Pravinchand Lakdawala in connection with the Punjab & Maharashtra Co-Operative Bank (PMC Bank) fraud case.

The chartered accountants were produced before the EOW court seeking their police remand.

So far, five accused have been arrested in the case.

Jayesh Dhirajlal Sanghani and Ketan Pravinchand Lakdwala were called for investigation to the office of the Economic Offences Wing (EOW), Mumbai.

During the course of investigation their association with HDIL came into light and both the chartered accountants couldn't provide convincing explanations regarding their alleged role as statutory auditors of the PMC Bank.

Thereafter, both of them were arrested for further investigation, according to an EOW statement.

Both of the accused were produced for availing police custody before Additional Chief Metropolitan Magistrate’s Holiday Court, Esplanade, Mumbai. Further investigation is in progress, according to the EOW statement.

It may be recalled that in late September 2019, the Reserve Bank of India (RBI) had restricted withdrawals from PMC Bank for six months and asked the bank not to grant or renew any loans or advances, or make any investment or incur any liability, including borrower of funds and acceptance of fresh deposits.

The directions were necessitated on account of major financial irregularities, failure of internal control and systems of the bank and wrong or under-reporting of its exposures under various offsite surveillance reports.

The RBI later sacked the PMC Bank's board of directors under sub-section 1 and sub-section 2 of Section 36 AAA read with Section 56 of the Banking Regulation Act 1949. The bank is now under the charge of an administrator.