The Economic Offences Wing of the Mumbai Police on Thursday arrested two top officials of the real estate company Housing Development and Infrastructure Limited, or HDIL, in the PMC Bank case, The Economic Times reported. The authorities also seized property worth Rs 3,500 crore in connection with alleged financial irregularities at the company.

One of those arrested, Rakesh Wadhawan, is the executive chairperson of the company and the other, Sarang Wadhawan, is the managing director. They were named in a first information report filed on Monday. Officials of the Punjab and Maharashtra Cooperative Bank were also named in the FIR for loan default reportedly up to Rs 4,300 crore.

“We have arrested the directors of HDIL and they are being questioned,” Economic Offences Wing chief Rajvardhan Sinha said, according to News18. “Maximum custody will be sought when they are being produced tomorrow before a court.”

A special investigation team has been formed to conduct inquiries into the case, the police said on Monday. The police had issued a lookout notice against the two HDIL officials and reportedly asked immigration officials to make sure they were not allowed to leave the country, according to India Today.

HDIL had said in a statement on Tuesday that loans taken from banks including PMC Bank were in the normal course of business, after providing adequate security cover. The group said it was ready to start discussions with PMC Bank to protect the interest of depositors.

The real estate firm, replying to queries by stock exchanges, added that its books of accounts have been audited and reflect a true and fair picture of its business.

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