New Delhi: The Delhi High Court Tuesday asked the Centre and the RBI to respond by August 19 on the plea seeking release of up to Rs 5 lakh to depositors of the Punjab and Maharashtra Cooperative (PMC) Bank.


COMMERCIAL BREAK
SCROLL TO CONTINUE READING

On May 28, had asked the Centre, the RBI and PMC Bank to let depositors withdraw the above mentioned amount in the wake of difficulties faced by them during COVID-19 pandemic  


Meanwhile, PMC Bank has been put under restrictions by the RBI, following the unearthing of a Rs 4,355-crore scam.


The Delhi HC bench has issued notice to the Finance Ministry, Reserve Bank of India and PMC Bank seeking their stand on the application moved by consumer rights activist Bejon Kumar Misra. The petitioner has sought directions to the bank and others to immediately lift the procedural curb on withdrawal of money without any condition to allow the depositors to cater to their urgent needs amid the COVID-19 pandemic.


Notably, on June 14, a special PMLA rejected the bail pleas of Housing Development and Infrastructure Ltd (HDIL) promoters Rakesh Wadhawan and Sarang Wadhawan in the money laundering case involving PMC Bank.


Rakesh Wadhawan and his son Sarang are accused, besides several others, in the Rs 4,355-crore PMC Bank scam which surfaced in September last year. The case stems from massive loans given by PMC Bank to the now bankrupt HDIL. The father-son duo have been booked under the Prevention of Money-Laundering Act (PMLA).


PMC bank officials allegedly gave loans to HDIL between 2008 and 2019 despite no repayment of the previous loans. Out of the 44 bank accounts responsible for not paying back the huge loans taken from PMC Bank, 10 belonged to HDIL and the Wadhawans. Out of the 10 bank accounts, Sarang and Rakesh had one personal account each.


The case is being probe by Enforcement Directorate, along with Economic Offences Wing of Mumbai police.