Published On: Fri, Oct 18th, 2019

SC asks scam-hit PMC Bank account holders to approach High Court

Apex court turned down Friday the plea filed by account holders of scam-hit PMC Bank to lift cash withdrawals restrictions imposed by RBI.

Earlier this week the banking regulator raised the limit to Rs 40,000 from Rs 25,000 following telephonic discussion between finance minister Nirmala Sitharaman and RBI governor Shaktikanta Das on Saturday.

A bench headed by Chief Justice of India Ranjan Gogoi asked the petitioner Bejon Kumar Mishra to approach the high court citing Supreme Court could not entertain under article 32 (writ jurisdiction).

Solicitor General Tushar Mehta said ED is taking appropriate action against the culprit of Rs 4,355 crore of the Punjab & Maharashtra Co-operative Bank.

Mishra filed the petition on behalf of 500 account holders seeking to lift withdrawals capped at Rs 40,000 over a six-month period. The plea further requests that both RBI and Centre should be directed to ensure complete insulation as well as insurance of the money deposited by account holders.

The bank officials loaned 73 percent of its total loan book to Housing Development and Infrastructure Ltd (HDIL).

SC asks scam-hit PMC Bank account holders' plea to approach High Court

Mumbai Police’s Economic Offences Wing said the loans to HDIL turned non-performing assets and bank management failed to disclose it from the RBI’s scrutiny.

Meanwhile, dozens of PMC Bank depositors protested on Wednesday outside the RBI demanding to lift the withdrawal restrictions. One depositor is alleged to have committed suicide and another died out of heart attack.

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