Ahmedabad, May 26: A metropolitan court today remanded to two days police custody former managing director of the beleaguered Madhavpura Mercantile Co-Operative Bank (MMCB), Devendra Pandya, who had surrendered to the investigating agency on May 13. Seeking two-days remand, investigating official of CID-crime submitted to the court that Pandya, in his capacity as managing director, had taken advance of Rs two crore as against the limit of Rs 75 lakh permitted, for expansion of a private firm Amrita Marketing Private Ltd (AMPL), wherein his son, nephew and daughter-in-law were directors.

Also, on March 8, 2001, just four days before the bank collapsed, he managed to transfer Rs one crore from the loan department to his savings account, the official said. Further, it also came to light during interrogation that he had invested a large sum in real estates in and around the city, in the name of his son and it needed to be probed whether these lands were purchased from Rs two crore taken as loan or not, he said.

The CID-crime has also recovered some documents pertaining to AMPL's reported investment of large sums in names of other kith and kin in RBI relief bonds, Narmada bonds and Unit Trust of India, the source of which needed more investigation, court was told.

The MMCB had plunged into deep liquidity crisis after Mumbai-based share broker Ketan Parekh allegedly embezelled nearly Rs 900 crore in march 2001 and other members of board of directors showing blatant nepotism in advancing loans. Bureau Report