PMC Bank crisis: ED Court denies bail to HDIL promoter Rakesh Wadhawan amid COVID-19

Amid Coronavirus pandemic, HDIL promoter Rakesh Wadhawan's bail in connection to PMC Bank fraud has been denied by a special court in Mumbai on Friday. Wadhawan had sought bail on medical grounds citing Coronavirus. Wadhawan and his son Sarang - who were granted bail by a special court on March 30, but order was delayed by court for 8 weeks as Ecomic Offence Wing (EOW) intervened.

Wadhawans in Mahabaleshwar skipping Yes Bank Scam summons; ED seizes 5 high-end vehicles

Kapil & Dheeraj Wadhawan break lockdown

Rakesh Wadhawan's nephews Kapil and Dheeraj Wadhawan - promotors of DHFL, who are embroiled in Yes Bank scam, recently broke lockdown to travel from Mumbai to Mahabaleshwar. brors who had recently skipped ED summons citing Coronavirus had travelled to Mahabaleshwar along with 20 family members after receiving a clean-chit from Special Principal Secretary of Maharashtra Home Minister. While state government has issued a probe into violation, all 23 Wadhawans have been quarantined.

PMC Bank Scam Vs Yes Bank Moratorium: Key differences between two recent banking crises

PMC Bank Scam

On September 21, RBI took control of government-run Punjab and Maharashtra Cooperative (PMC) Bank bank for six-months capping withdrawals at ₹1,000 per account and disallowing bank to make any fresh loans for six months. Amid several depositors protesting in front of government and RBI, withdrawal limit has been increased to Rs. 40,000. Moreover, Supreme Court has also stayed Bombay High Court order directing sale of bankrupt HDIL to ensure repayment of dues and refused to RBI-sanctioned limits on withdrawal. Maharashtra government is mulling merging scam-hit bank PMC bank with Maharashtra State Co-operative (MSC) Bank and RBI is yet to anunce any scheme to revive state-run bank.

Wadhawan family violates Lockdown; 23 family members travel to Mahabaleshwar

After takeover, PMC Bank had admitted that one large account-Housing Development and Infrastructure Ltd (HDIL) was sole reason for present crisis. Following this, HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan were arrested by Mumbai Police's Ecomic Offences Wing and ED in connection with a fraud of over Rs 4,355 crores. PMC Bank officials gave loans to HDIL between year 2008 and August 2019 despite t paying previous loans. Six depositors' deaths have occurred due to insufficient cash since n. PMC Bank which had Rs. 11,500 crore deposited in its 137 branches, has already depleted to Rs 200 crores as Tax officials have asked to pay TDS. Meanwhile, Central government has sought to improve situation by introducing Banking Regulation (Amendment) Bill, 2020 to strengn cooperative banks by increasing professionalism, enabling access to capital, improving governance.

PMC Bank scam: SC stays Bombay High court's release of Wadhwans from Arthur Road Jail