The latest to surface is Awas Developers & Construction Pvt. Ltd., which now finds itself facing a staggering ₹170 crore liability—despite receiving just ₹30 crore in actual loan disbursements.
According to a forensic audit by Deepak Singhania & Associates, the Punjab and Maharashtra Co-operative (PMC) Bank approved multiple credit facilities to Awas Developers between 2008 and 2019, totaling ₹135 crore. Yet transaction records reveal a stark mismatch: the company only received ₹30 crore—and that too, prior to August 2012.
Even more troubling, no funds were transferred under the revised credit limits sanctioned in 2015, 2017, and 2019—amounting to ₹75.25 crore, ₹65.25 crore, and ₹135 crore respectively. Still, the bank continued to charge interest, inflating Awas’s liability on paper to over ₹170 crore.
In its defense, Awas Developers claims it mortgaged multiple properties across Mumbai, Thane, and Palghar, in good faith, anticipating full loan disbursements. With no fresh funding ever released, the company has challenged the bank's claim in arbitration, arguing that it should only be liable for the ₹30 crore actually received.
This isn’t an isolated incident.
A parallel case involving Prithvi Realtors and Hotels Pvt. Ltd. reveals a similar pattern. Though sanctioned ₹87.5 crore, the company reportedly received no funds at all, yet accrued a ballooned liability of ₹150+ crore due to interest on paper loans.
The Reserve Bank of India’s 2019 audit (specifically paragraph 7) had already flagged systemic manipulation within PMC Bank’s books. Over 21,000 fictitious loan entries, collectively worth over ₹5,000 crore, were inserted to falsify interest income, hide bad loans, and present a healthier financial outlook than reality.
What emerges is a deeply flawed banking ecosystem—where loans existed only in theory, liabilities were fabricated, and bank records were doctored to deceive auditors, regulators, and depositors alike.
Now, with legal proceedings underway, Awas Developers is pushing back firmly. The company contends it cannot be held accountable for imaginary liabilities and is demanding regulatory transparency and criminal probes into what appears to be a case of internal fraud and collusion.
As the saga unfolds, PMC Bank’s story is no longer just about one institution's downfall—it’s a wake-up call for India’s entire cooperative banking system.
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