Former PMC Bank chairman, HDIL directors sent to police custody till October 14

A Mumbai court hearing the PMC Bank case has extended police custody of Housing Development and Infrastructure Limited (HDIL) Directors Rakesh and Sarang Wadhwan till October 14. The Wadhwans were arrested last week by the Economic Offences Wing of the Mumbai PolicePolicePolice after their real estate firm set off a crisis in the Punjab Maharashtra Cooperative (PMC) Bank by defaulting on loans worth Rs 4,355 crore.

Distressed PMC customers, who have argued that the revised Rs 25,000 limit on withdrawals imposed by the Reserve Bank of India (RBI) is still too little, gathered outside the court to protest. Carrying placards that read "No Bail, Only Jail", they accused the RBI of not taking strict action against the erring officials and appealed to Prime Minister Narendra Modi to intervene in the matter.

Last week the Enforcement Directorate filed a money-laundering case against Rakesh Wadhwan and his son, Sarang. The probe agency carried out raids at six places in Mumbai, including the HDIL office in Bandra (East) and the Wadhwan residence in Bandra (West).