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Published 17:35 IST, October 23rd 2019

Shatrughan Sinha appeals to HM Shah, says time to resolve PMC Crisis

Shatrughan Sinha appealed Amit Shah to look into the Punjab & Maharashtra Co-operative Bank (PMC) crisis and resolve the matter for people caught in the middle

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Congress leader and former actor Shatrughan Sinha on Wednesday appealed to the Union Home Minister Amit Shah to look into the Punjab & Maharashtra Co-operative Bank (PMC) crisis and resolve the matter for people caught in the middle. He asked Amit Shah to do so as a return gift to the nation who wished him well on his birthday. "People are running from pillar to post & to different courts for their own money," tweeted Sinha. Shah celebrated his 55th birthday on October 22. Shatrughan Sinha also expressed his distress over the troubles the depositors are facing since the Reserve Bank of India imposed withdrawal curbs on the bank in mid-September. 

READ | PMC Bank | Additional Rs 50000 Can Be Withdrawn For Emergency: Somaiya

Sinha requested in a series of tweets

Amit Shah: 80% depositors are insured

In an exclusive interview with Republic TV, Amit Shah had on October 15 addressed the PMC bank scam where he assured the depositors that their interests will be protected as Enforcement Directorate (ED) has seized more amount than the actual amount of the fraud. Shah further spoke about the Depositor's Insurance Scheme under which 80% of the depositors are insured. He also mentioned that only legal proceedings are left and by and large, all the depositors will get their money back.

"80% of the depositors with less than Rs 1 lakh in deposits are insured under the Depositor's insurance scheme. The ED has further seized more amount than the actual amount of fraud. So only legal proceedings are left and I believe that very soon the customers will get their money back."

READ | Amit Shah Assures PMC Clients: ED's Seizures Greater Than Scam Amount

What is the PMC Bank Scam?

On September 21, the RBI took control of the bank for six-months. It had also capped withdrawals at ₹1,000 per account and the bank is not allowed to make any fresh loans for six months. The withdrawal limit has been increased to Rs. 40,000 as of Tuesday. After the takeover, PMC Bank had admitted that one large account-HDIL was the sole reason for the present crisis, as per PTI. Following this, the HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan who had been arrested in connection with a fraud of over Rs 4,355 crores, have been sent to custody.

According to the police, PMC Bank officials gave loans to HDIL between the year 2008 and August 2019 despite not paying the previous loans. The Wadhawans along with Waryam Singh- all HDIL promoters - and PMC bank's ex-chair Joy Thomas are being investigated. As of Friday, the SC too had refused to lift the RBI-sanctioned limits on withdrawal.

READ | As HM Amit Shah Turns 55, Political Leaders Extend Their Wishes

READ | PMC Bank Scam: Delegation Of 10 Protestors To Meet RBI Officials

15:22 IST, October 23rd 2019