Somaiya urges EOW to register case of criminal conspiracy against management of HDIL, PMC Bank

Former BJP MP Kirit Somaiya on Thursday accused the top management of PMC Bank and HDIL of looting the bank and demanded that a case of criminal conspiracy be filed in this regard.

"With regards to Punjab and Maharashtra Cooperative Bank, its top management, former chairman and CMD of HDIL have looted it. I have all the information. Around Rs 3,000 crore has been given into various accounts of HDIL without any proper documentation and security," he said while speaking to reporters after he gave a written complaint at the Economic Offences Wing (EOW) in this regard.

Somaiya alleged that the bank paid several hundred crores even after HDIL turned defaulter.

"It is a criminal conspiracy. So, the EOW should register a case of criminal conspiracy, cheating, fraud in this regard. Rakesh and CMD of Bank...they should be investigated and the action should be taken against them," he said while adding that whosoever is responsible, action should be taken against them.

Earlier in the day, it was reported that he has written a letter to the Reserve Bank of India (RBI) requesting it to initiate criminal action against the management of HDIL company and PMC Bank for allegedly looting the deposits of people.

"Out of Rs 8,000 crore advances, I fear more than Rs 3,000 crore gone to the HDIL and its group companies," he said, adding that this could happen only after connivance between the bank's senior management and HDIL owners.

"The relationship between the HDIL owner and the bank Chairman (former?) is well known. Therefore, I request criminal action against the management of HDIL and PMC Bank management for the looting of 9.12 lakh depositors," the letter by Somaiya read.

HDIL (Housing Development and Infrastructure Limited) is a listed real-estate development company, which had allegedly been extended large loans by the PMC.

"It is well known that HDIL default started in the first half of 2018. The company has defaulted various repayment of loans, advances, NCD. Several financial institutions, banks took note and initiated action," Somaiya's letter read.

Earlier on August 21, the shares of HDIL were locked in 20 per cent lower circuit after the National Company Law Tribunal (NCLT) admitted the Bank of India's insolvency plea against the realtor.

The bank had approached Mumbai bench of the NCLT against HDIL after it failed to repay dues of Rs 522 crore.

In the letter addressed to the RBI Governor Shaktikanta Das, Somaiya also urged him to conduct a "forensic audit" of all the transaction of the PMC Bank with HDIL.

"Request the RBI, Administrator, must file a criminal complaint against HDIL and bank's concerned officials, a full-fledged forensic audit of the bank's transactions with HDIL be undertaken immediately," it added.