PMC Bank scam: EOW conducts search at Rajneet Singh's residence

A day after Rajneet Singh, son of former BJP MLA Sardar Tara Singh, was arrested in connection with the Punjab and Maharashtra Cooperative (PMC) Bank scam, the Economic Offences Wing (EOW) of the city police on Sunday conducted a search at his residence, an official said.

Before the search, Rajneet Singh, who is a director of the scam-hit bank, was produced before a court, which remanded him in police custody till November 25.

"After producing Singh in the court, a team of around four officials took him to his flat in Karmashetra Building in Sion Koliwada area and conducted a search there. They were there for over an hour. Singh's family members were asked to wait outside the building during the search," an EOW official said.

"But what has been recovered and seized from the flat is yet to be known," he added.

With the arrest of Rajneet Singh, total nine persons have been arrested in connection with the alleged Rs 4355- crore scam, including three top bank officials and two promoters of HDIL --Rakesh and Sarang Wadhawan, and auditors.

Besides being a director, Rajneet Singh is a member of the loan recovery committee of the bank.

The EOW suspects a nexus between some of the accused and the realty group HDIL, whose mammoth loan defaults are said to have caused a liquidity crisis at the bank, leading to appointment of an administrator by the RBI and restrictions on withdrawal of funds.

The EOW had earlier told a sessions court that prima facie a nexus between some of the accused and HDIL group companies has been made out by the investigators who suspected a "deep-rooted conspiracy".