PMC Bank Crisis: Police agree to RBI's request to auction HDIL assets

In a major relief to the aggrieved PMC bank depositors, Mumbai police on Thursday have agreed to release the attached properties of HDIL for auction in connection with the PMC bank scam, according to ANI. The Mumbai police have agreed to the request of Reserve Bank of India (RBI)-appointed administrator to release the properties for auction, a senior police official said to ANI. Protestors have been demanding their savings for the past 39 days.

Police agree to auction HDIL assets

The official reportedly also added that they are ready to do this but would require a court's approval for the same, hence the Economic Offences Wing (EOW) will soon approach the concerned court for its approval regarding the same. RBI appointed administrator JB Bhoria had written to EOW to release the properties of Wadhawans (HDIL) so that those properties can be auctioned. EOW is likely to approach the court in 2-3 days to get the provisionally attached properties detached, according to ANI. This may put PMC in a better financial position to deal with the crisis and probably offer relief to its customers.

WATCH | PMC Bank scam: RBI mulling bank's merger as depositors demand savings

Protests against RBI by PMC depositors

Earlier in the day, another PMC Bank depositor died of a heart attack, making it the sixth death among depositors since the outbreak of the bank crisis. 68-year-old Keshumal Hinduja died last night in Mulund Colony, Mumbai. Protests have been protesting outside RBI at Bandra-Kurla Complex, in Mumbai, seeking some sort of relief after 39 days since the RBI put a cap on the withdrawal limit.  A delegation of 10 depositors, who were protesting, met with RBI officials last Tuesday. The delegation was assured by the RBI assured the depositors that their money is safe. The central bank has also assured that they would provide relief to depositors and announce moves to tackle the issue between October 25 and 27.

READ | PMC Bank crisis: 6th death within 38 days, yet no written assurance

RBI mulling merger?

Meanwhile, on Tuesday, the RBI was mulling at a potential merger of the debt-ridden PMC Bank with any willing bank, according to a statement released by the RBI to protestors. The central bank has assured depositors who are still protesting, that their money is safe and the RBI is contemplating a potential merger. The central bank also urged any willing bank to step forward in the case.  PMC Bank has Rs. 11,500 crore deposited the bank and has 137 branches.

Read: RBI Penalises Bandhan Bank And Two Pune-based Banks For Violation

What is the PMC Bank Scam?

On September 21, the RBI took control of the bank for six-months. It had also capped withdrawals at ₹1,000 per account and the bank is not allowed to make any fresh loans for six months. The withdrawal limit has been increased to Rs. 40,000 as of Tuesday. After the takeover, PMC Bank had admitted that one large account-HDIL was the sole reason for the present crisis, as per PTI. Following this, the HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan who had been arrested in connection with a fraud of over Rs 4,355 crores, have been sent to custody. According to the police, PMC Bank officials gave loans to HDIL between the year 2008 and August 2019 despite not paying the previous loans. The Wadhawans along with Waryam Singh- all HDIL promoters - and PMC bank's ex-chair Joy Thomas are being investigated. The Supreme Court too had refused to lift the RBI-sanctioned limits on withdrawal.

Read: 37 Days On, PMC Bank Depositors' Quest For Savings And Justice Goes On