PMC Bank Crisis: Police agree to RBI's request to auction HDIL assets

In a major relief to aggrieved PMC bank depositors, Mumbai police on Thursday have agreed to release attached properties of HDIL for auction in connection with PMC bank scam, according to ANI. Mumbai police have agreed to request of Reserve Bank of India (RBI)-appointed ministrator to release properties for auction, a senior police official said to ANI. Protestors have been demanding ir savings for past 39 days.

Police agree to auction HDIL assets

official reportedly also ded that y are rey to do this but would require a court's approval for same, hence Ecomic Offences Wing (EOW) will soon approach concerned court for its approval regarding same. RBI appointed ministrator JB Bhoria h written to EOW to release properties of Whawans (HDIL) so that those properties can be auctioned. EOW is likely to approach court in 2-3 days to get provisionally attached properties detached, according to ANI. This may put PMC in a better financial position to deal with crisis and probably offer relief to its customers.

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Protests against RBI by PMC depositors

Earlier in day, ar PMC Bank depositor died of a heart attack, making it sixth death among depositors since outbreak of bank crisis. 68-year-old Keshumal Hinduja died last night in Mulund Colony, Mumbai. Protests have been protesting outside RBI at Bandra-Kurla Complex, in Mumbai, seeking some sort of relief after 39 days since RBI put a cap on withdrawal limit.  A delegation of 10 depositors, who were protesting, met with RBI officials last Tuesday. delegation was assured by RBI assured depositors that ir money is safe. central bank has also assured that y would provide relief to depositors and anunce moves to tackle issue between October 25 and 27.

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RBI mulling merger?

Meanwhile, on Tuesday, RBI was mulling at a potential merger of debt-ridden PMC Bank with any willing bank, according to a statement released by RBI to protestors. central bank has assured depositors who are still protesting, that ir money is safe and RBI is contemplating a potential merger. central bank also urged any willing bank to step forward in case.  PMC Bank has Rs. 11,500 crore deposited bank and has 137 branches.

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What is PMC Bank Scam?

On September 21, RBI took control of bank for six-months. It h also capped withdrawals at ₹1,000 per account and bank is t allowed to make any fresh loans for six months. withdrawal limit has been increased to Rs. 40,000 as of Tuesday. After takeover, PMC Bank h mitted that one large account-HDIL was sole reason for present crisis, as per PTI. Following this, HDIL directors Sarang Whawan and Rakesh Kumar Whawan who h been arrested in connection with a fraud of over Rs 4,355 crores, have been sent to custody. According to police, PMC Bank officials gave loans to HDIL between year 2008 and August 2019 despite t paying previous loans. Whawans along with Waryam Singh- all HDIL promoters - and PMC bank's ex-chair Joy Thomas are being investigated. Supreme Court too h refused to lift RBI-sanctioned limits on withdrawal.

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