PMC Bank scam: No relief from Bombay HC, protest continues for 57 days

Punjab and Maharashtra Co-operative (PMC) Bank depositors are still protesting on the road for their own money, and this time it was outside the Bombay High Court. On Tuesday, a division bench of Justices SC Dharmadhikari and RI Chagla was hearing petitions filed by the bank depositors, challenging restrictions imposed by the RBI on withdrawals. The RBI filed a detailed affidavit and also provided the affidavit copy to the petitioners regarding steps to be taken for protecting the interest of customers.

Read: PMC Bank Scam: EOW Arrests BJP MLA's Son And Former Director Rajneet Singh

'We cannot come to a conclusion'

During the hearing, the HC said, "We will do its arguments once completed reading with RBI reply mentioned in its affidavit and filed today. We cannot come to any conclusion." The court further stated, "50,000 is the limit from RBI, anyone wants to extend their limit, can go to RBI, submit a letter and discuss your problems with RBI. The court will not interfere in this." During the arguments, the depositors' counsel remarked, "Even RBI is involved in PMC Scam with Rakesh and Sarang Wadhawan".

The HC has adjourned the hearing till December 4.

Read: Another Auditor Arrested In PMC Bank Scam

9 persons arrested

On Saturday, One of the directors of the scam-hit PMC Bank, Rajneet Singh, son of ex-Bharatiya Janata Party (BJP) MLA Sardar Tara Singh, was arrested by the Mumbai Police's Economic Offences Wing (EOW). So far, 9 persons have been arrested in connection with the alleged Rs.4355 crore scam including three top bank officials and two promoters of Housing Development Infrastructure Ltd (HDIL)- Rakesh and Sarang Wadhawan, and the auditors. The EOW had earlier told a sessions court that prima facie, a nexus between some of the accused and HDIL group companies has been made out by the investigators who suspected a "deep-rooted conspiracy".

Read: Arrested PMC Bank Auditors To Be Produced In Court On November 12

Probe agencies seek monetisation

The RBI placed PMC Bank under restrictions after an Rs.4,355 crore scam surfaced and capped withdrawals by account holders. Authorities are probing the alleged criminal conspiracy between some officials of PMC Bank and HDIL promoters Rakesh and Sarang Wadhawan. The Wadhawans have already given their consent to selling the 18 attached assets, including two private jets, a speed boat and a fleet of high-end cars. In a letter dated October 16 to the Finance Ministry, the RBI and probe agencies including EOW and the Enforcement Directorate sought monetisation of the attached assets at “fair market value”. Hapless PMC depositors have been protesting across the country for getting their money back ever since the bank was placed under restrictions.

Read: PMC Bank Scam: RBI Extends Withdrawals To Rs 50,000; Protest Continues