Day after arrest, cops search Rajneet Singh’s home in connection with PMC bank case

Day after arrest, cops search Rajneet Singh's home in connection with PMC bank case
Rajneet, son of former BJP MLA Tara Singh, was on the board of directors and also a member of the loan recovery committee of the bank

The Economic Offences Wing (EOW) of Mumbai Police on Sunday conducted a search at the residence of Rajneet Singh, son of former BJP MLA Sardar Tara Singh, in connection with the Punjab and Maharashtra Cooperative (PMC) Bank scam.

The search comes a day after Rajneet was arrested and 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 was quoted as saying.

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

With Rajneet’s arrest, a total of nine persons have been arrested in connection with the alleged Rs 4355-crore bank scam. Those arrested include three top bank officials, Rakesh and Sarang Wadhawan (promoters of HDIL), and auditors.

Rajneet was on the board of directors and also a member of the loan recovery committee of PMC bank.

According to EOW, bank officials allegedly colluded with promoters of HDIL and illegally routed funds to the now-bankrupt firm, which accounted for 73 percent of PMC’s loan book.

The loan defaults purportedly caused a liquidity crisis at the bank, leading to the appointment of an administrator by the RBI and restrictions on the withdrawal of funds.