Published 12:21 IST, October 16th 2019
PMC Bank scam: SC agrees to hear PIL seeking protection for victims
A petition has been filed in the Supreme Court seeking protection for victims in the PMC bank scam, with the apex court agreeing to hear it on an urgent basis
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A petition has been filed in the Supreme Court regarding the PMC bank scam, with the apex court agreeing to hear it on an urgent basis. The PIL seeks protection for the victims of the scam, which has resulted in thousands of depositors being unable to access their savings. The RBI had on Monday increased the withdrawal limit for depositors from Rs 25,000 to Rs 40,000, providing some manner of relief, while the Finance Minister also confirmed that she had taken up the bank's clients' travails with the RBI Governor. Speaking to Republic Media Network's Editor-in-Chief Arnab Goswami on Tuesday, Home Minister Amit Shah had also assured depositors that the ED's seizures in the case were greater than the scam amount.
A plea filed in Bombay High Court
On Tuesday, a plea was filed in the Bombay HC challenging the restrictions imposed by the RBI on the PMC bank. The PIL was filed by a Mumbai-based NGO Action Network and eight persons. The persons claimed to be the depositors and account holders in the bank. The RBI has also put restrictions for extending fresh loans and deposits. The PIL reportedly said the decision by the RBI was 'irrational' and 'violated the fundamental rights of the common public'. The PIL appealed to the HC to direct RBI to strengthen regulatory laws.
Rakesh Wadhawan and other accused sent to police custody
Earlier, the ED had seized the frozen and identified moveable and immovable assets owned by Housing Development and Infrastructure Limited(HDIL), its promoters, officials and others. The Economic Wing of Mumbai Police alleged Rakesh Wadhawan and Sarang Wadhawan of HDIL and its group companies conspired with PMC Bank officials Joy Thomas and Waryam Singh to avail loans in a fraudulent manner. The total proceedings of the crime in the case have been determined at Rs 4,355 crores. The prime accused-Rakesh Wadhawan, Sarang Wadhawan and Waryam Singh were produced in the court on Monday afternoon. Hearing both the sides, the court then sent the accused trio to police custody till October 16.
FIR registered against HDIL
An FIR was registered by the EOW (Economic Offences Wing )on September 30 that named HDIL, its directors, group companies and other employees of the bank for offences under section 420, 467 and 471 read with section 120B of Indian Penal Code (IPC). Another FIR was filed under the Money Laundering Act, 2002 (PMLA).
Account-holders protest
Several account holders of the bank have been protesting in Mumbai against the RBI decision. On September 23, the RBI had imposed regulatory restrictions on the PMC Bank for six months over the alleged financial irregularities. A plea was filed in the Bombay HC challenging the restrictions imposed by the RBI on the PMC bank.
11:24 IST, October 16th 2019