Supreme Court refuses to entertain plea by PMC Bank account holders for lifting cash withdrawal restrictions

New Delhi: The Supreme Court on Friday refused to entertain plea by Punjab & Maharashtra Co-operative Bank (PMC) account holders seeking directions to Reserve Bank of India (RBI) against putting a restriction on withdrawal of money.  

A bench of Chief Justice Ranjan Gogoi and Justices SA Bobde and S Abdul Nazeer told the petitioners that they may approach the concerned High Court for relief.

Solicitor General Tushar Mehta, appearing for the Centre, informed the court that the government shares the concern of PMC bank account holders and are taking effective steps to attach the properties of wrongdoers among PMC bank officials.

The plea had sought directions to protect the interests of around 15 lakh customers whose money is blocked in the scam-hit PMC Bank.

In September, RBI had imposed regulatory restrictions on the PMC Bank under the provisions of the Banking Regulation Act. RBI restricted the activities of the PMC Bank for six months and asked it to not grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits. The central bank had also put the initial cap on withdrawal at Rs 1,000 and later increased to Rs 40,000.

As many as two PMC Bank customers died within 24 hours - one Fattomal Punjabi and another person named Sanjay Gulati.

The Enforcement Directorate (ED) has seized and identified movable and immovable assets worth more than Rs 3,830 crore owned by Housing Development and Infrastructure Limited (HDIL) in connection with the case. 

PMC Bank former chairman Waryam Singh and HDIL directors Rakesh Wadhawan and Sarang Wadhwan are in police custody.

(With agencies inputs)