Joy Thomas, the suspended managing director of Punjab and Maharashtra (PMC) Bank, was arrested in an alleged case of Rs. 6,500 crore fraud, sources said. The agency conducted searches at six locations in Mumbai and adjacent areas connected with the bank's former chairman and HDIL promoters. Rakesh Wadhawan and Sarang Wadhawan, senior executives at HDIL, are in police custody till October 9. On Thursday, the Reserve Bank increased the withdrawal limit for account holders of the stressed PMC Bank to Rs. 25,000 from the previous Rs. 10,000 withdrawal cap.
Last week, the Reserve Bank of India (RBI) moved to take over PMC, one of India's top five cooperative banks with over nine lakh depositors and suspended Joy Thomas and the board of the bank after uncovering irregularities in lending.