The arrested duo, Jayesh Sanghani and Ketan Lakdawala, served as statutory auditors when the scam was committed.
The Mumbai Police's Economic Offences Wing (EOW) on November 11 night arrested two auditors, Jayesh Sanghani and Ketan Lakdawala, in connection with the Rs 4,355 crore alleged Punjab and Maharashtra Cooperative (PMC) Bank scam, an official told PTI.
The arrested duo served as statutory auditors of the bank when the scam occurred. They are suspected to have played a key role in covering up the irregularities involving some top officials of the bank, the official added.
"They failed to give convincing replies regarding their role as the statutory auditors of the PMC Bank. They were arrested on Monday (November 11) evening and booked under relevant sections of the Indian Penal Code," he said.
Police had earlier called Sanghani and Lakdawala, the proprietors of Ashok Jayesh & Associates and Lakdawala & co, respectively, for questioning.
Probing the scam, the EOW suspects a nexus between some of the accused and Housing Development and Infrastructure (HDIL)group companies.
According to investigators, a deep-rooted conspiracy caused loss of public funds.
The agency had said that six people have lost their lives due to loss of money and the public is protesting over the irregularities.
The police so far arrested five persons, including promoters of the HDIL and top officials of the PMC Bank.(With inputs from PTI)