One of the directors of the scam-hit Punjab and Maharashtra Cooperative (PMC) Bank, Rajneet Singh, son of ex-BJP MLA Sardar Tara Singh, was on Saturday arrested by the Mumbai Police's Economic Offences Wing (EOW), an official said.
Rajneet was taken into custody in evening at the EOW office, as investigators found his replies on the loan granted to the realty group HDIL, which has failed to repay, unsatisfactory and unconvincing, according to the official.
Besides being a director, Rajneet is a member of the loan recovery committee of the bank, he said.
Rajneet was questioned over the loan provided by the bank to HDIL group companies and the steps taken, if any, to recover the pending dues, the official added.
"Rajneet provided unsatisfactory and unconvincing explanations, which hints at his likely role in the scam," he said, adding that Rajneet will be produced before a holiday court and his police remand will be sought.
So far, 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.
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 the appointment of an administrator by 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".
Six people had died due to loss of money, it had said.
Tara Singh had served as the MLA from Mulund constituency in Mumbai.
