PMC Scam: 'Govt on its toes' says Finance Min; speaks to RBI Governor

Finance Minister Nirmala Sitharaman who assured action in the PMC bank fraud case spoke to the Governer of the Reserve Bank of India (RBI), Shaktikanta Das, on October 14. The depositors have been demanding their money to be returned by the bank and are also demanding that no bail should be given to the accused Housing Development and Infrastructure Ltd (HDIL) promoters, Sarang and Rakesh Wadhawan.

Nirmala Sitharaman stated that she is keeping up a rigorous follow up on the case.

"I am closely monitoring it. Even this afternoon I talked to the Governor of Reserve Bank of India.The Governer has assured to keep interest of people and work towards providing money to the customers."

READ: PMC Bank scam: FM gets RBI Guv's assurance- Customers 'top priority'

'Government on its toes' 

She further assured the customers that the government is vigilant and is making sure that the promotors get their savings.

"Government is on its toes bringing assets of the promoters and making sure that the process does not suffer to get the assets which will help in paying the customers."

Over the continuing protests, Union Finance Minister Nirmala Sitharaman met PMC bank protestors on October 10 and heard their complaints and demands.  "Finance Ministry may have nothing to do with it (PMC bank matter) directly because RBI is the regulator. But from my side, I've asked the secretaries of my ministry to work with the Rural Development Ministry and Urban Development Ministry to study in detail as to what is happening," she had said.

Last month, the RBI had restricted the activities of the PMC Bank for six months and also barred it from granting or renewing any loans and advances, make any investment or incur any liability.

READ: Maharashtra CM Fadnavis assures PMC customers, says 'will speak to PM'

The 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

READ: Sanjay Nirupam slams Finance minister Nirmala Sitharaman amid PMC scam

READ: D Raja: PMC Bank scam a failure of financial sector under Modi govt