PMC Bank case: Depositors protest as HC refuses to interfere with RBI order

PMC account holders protest outside High Court premises over the bank's crisis, in Mumbai | PTI

Hundreds of Punjab and Maharashtra Co-operative (PMC) Bank account holders protested outside the Bombay High Court on Tuesday after it refused to interfere into an RBI order restricting the limit of money withdrawal.

The protestors, who have petitioned in the court seeking relief on withdrawal limit, expressed dissatisfaction "with the manner the court was handling the case".

During the course of hearing, the high court said the petitioners can go to the RBI to get the Rs 50,000 withdrawal limit extended and refused to interfere into the RBI order.

The protestors raised slogans against the court, the RBI and PMC Bank. Traffic on the road outside the high court was adversely affected during the protest demonstration which was finally dispersed by the police.

On September 23, the Reserve Bank of India (RBI) had placed restrictions on the bank's transactions for six months after large scale irregularities were detected in the finances. It asked the PMC Bank not to grant or renew any loans and advances, make any investment or incur any liability after an alleged fraud of Rs 4,355 crore came to light.

Subsequently, the RBI capped the withdrawal limit for the PMC Bank depositors, which was gradually increased to Rs 50,000.

As evidence of huge amounts of money being granted to the Housing Development and Infrastructure Ltd (HDIL) group in the form of unsecured loans started coming to light, the Economic Offences Wing (EOW) and the Enforcement Directorate (ED) registered offences in the case.

As many as 11 account holders have died so far.

Earlier today, the Bombay High Court adjourned the hearing till December 4 after RBI filed a detailed affidavit regarding steps to be taken for protecting the interest of customers.

A Congress delegation headed by Mumbai unit president Eknath Gaikwad and vice president Charan Singh Sapra will be meeting Governor Bhagat Singh Koshyari today to discuss the PMC issue.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel