PMC scam claims 9th life even as Bombay HC asks RBI to file affidavit

Another PMC Bank depositor Andrew Lobo passed away even as the Bombay High Court on Monday asked the Reserve Bank of India (RBI) on Monday to file an affidavit by November 13 listing the steps to prevent further damage to the depositors. Lobo, a senior citizen was a customer of the Mulund branch. As all his Fixed Deposits were in PMC Bank, Lobo was in huge tension as he desperately needed money for his treatment. His death marks the 9th such instance since the revelation of the PMC Bank scam when a depositor has lost his life due to the inability to withdraw money.  

Read: PMC Bank: Bombay HC Agrees To Hear PIL Seeking Relief From RBI Order

Bombay HC hears plea

A division bench of the Bombay High Court comprising of Justices S Dharmadhikari and R Chagla is hearing the pleas filed by the PMC Bank depositors, challenging the RBI’s restrictions on withdrawals. The court made it categorically clear that it did not wish to interfere in the matter if the RBI gave a reasonable explanation. Maintaining that the RBI was an expert body on such issues, the High Court bench indicated that it did not want to dilute the RBI’s authority. The next date of hearing will be November 19. 

Read: PMC Scam: BJP's Kirit Somaiya Says 'RBI Can't Act Without Audit Report

The HDIL-PMC bank scam 

The police registered a First Information Report (FIR) against the top officials of the PMC bank and the promoters of the Housing Development and Infrastructure Limited (HDIL). According to the prosecution, the bank continued giving loans to the debt-ridden HDIL from 2008 to 2019 despite the previous loans not being repaid. This caused a loss of nearly Rs.4,355 crore. Several sections of the Indian Penal Code (IPC) such as criminal breach of trust, cheating, and forgery have been invoked against the accused. Besides the promoters of HDIL Sarang and Rakesh Wadhawan, several officials such as the former Managing Director Joy Thomas, ex-Chairman Waryam Singh, and former Director Surjit Singh Arora were arrested. Out of 44 accounts, a total of 10 were linked to HDIL. These included the personal bank accounts of the accused.  

Read: PMC Scam: FM Assures Victims, Non-committal On Deposit Return Timeline

Customers stage protest

Despite Finance Minister Nirmala Sitharaman's assurance that she had spoken to the RBI Governor, it has failed to pacify the customers of the PMC bank. They have been severely affected by the monthly withdrawal limit being slashed to Rs. 40,000. Hundreds of aggrieved people have staged protests for more than a month. Their principal demands are the return of their hard-earned money stuck in the banks and the prosecution of the culprits of the scam. 

Read: Justice For PMC Victims: Aaditya Thackeray Confronted, Assures Support