Mumbai, March 12 (TIWN) The Mumbai Police Economic Offences Wing (EOW) has arrested a former director of Punjab and Maharashtra Cooperative (PMC) Bank and two of its valuers in connection with the ongoing probe into the Rs 4,355-crore scam, an official said here on Thursday.

Earlier, the top court had stayed the Bombay High Court order directing sale of bankrupt Housing Development and Infrastructure Ltd (HDIL) to ensure repayment of dues of crisis-hit Punjab and Maharashtra Cooperative Bank. Prior to this, it had also partially stayed the high court's order allowing shifting the Wadhawans from Mumbai's Arthur Road Jail to their residence. The Bombay High Court had set up a three-member committee for valuation and sale of encumbered assets of HDIL to expeditiously recover dues payable by the firm to PMC Bank.

The high court had passed the order while hearing a PIL seeking direction for expeditious disposal of HDIL assets and properties attached by the Economic Offence Wing and the Enforcement Directorate and repaying PMC Bank depositors at the earliest. The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that it had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to HDIL.