The Mumbai Police has filed a case against the former bank management and promoters of HDIL in the Punjab and Maharashtra Cooperative Bank case and said a special investigation team will be probing the case.
Based on a complaint by RBI-appointed administrator, the city police's Economic Offences Wing filed a first information report (FIR) in the case for forgery, cheating and criminal conspiracy against the officials.
As per initial investigations, the bank's losses since 2008 were Rs 4,355.46 crore, police said.
The bank's former chairman Waryam Singh, managing director Joy Thomas and other senior officials, along with the director of HDIL, Wadhawan, have been named in the FIR. First name of Wadhawan was not immediately available.
Explaining the modus operandi of the case, the FIR said HDIL promoters allegedly colluded with the bank management, to draw loans from the bank's Bhandup branch.
Despite non-payment, the bank officials did not classify the loans as non-performing advances and intentionally hid the information about the same from RBI, an official statement from the police said.
They also created fictitious accounts of companies which borrowed small sums of money, and created fake reports of the bank to hide from the regulatory supervision, it said.
The FIR has been filed under sections 409 (criminal breach of trust by a public servant or banker), 420 (cheating), and 465, 466 and 471 (related to forgery) of the Indian Penal Code along with 120 (b) (criminal conspiracy).
The bank, which has 137 branches and over Rs 11,000 crore in deposits, has been put under restrictions since last week after the RBI discovered certain financial irregularities in the functioning of the multi-state lender.
According to sources, the overall exposure of the bank to the financially stressed HDIL group is around Rs 6,500 crore or over 73 per cent of the advances, and all of it is not being serviced.
Under the restrictions, which are to be applicable for six months, a depositor is able to withdraw only Rs 10,000 per account. It can also not take fresh deposits or extend any new
The restrictions have led to a massive public outcry with people thronging the branches for their money. The RBI has said that 60 per cent of the accounts have balances under Rs 10,000 and will not be impacted by the measures.