PMC Bank: Unable to pay medical bills, Thane man dies; 8th victim so far

Another depositor of the troubled cooperative lender PMC Bank has died allegedly due to an inability to take care of his medical bills, his family members said on Monday.

The 74-year-old Andrew Lobo died at his home at Kasheli in the neighbouring Thane late Thursday evening, his grandnephew Chris told PTI.

Lobo is the eighth PMC depositor to have reportedly died after the bank was placed under an RBI administrator with withdrawal caps. There was a case of suicide of a depositor as well at the bank since September 23 when the RBI suspended the bank management.

Chris said Lobo had over Rs 26 lakh in his accounts with the bank and used to depend on the interest for his day- to-day needs.

"Two months ago, he developed a lung infection which needed regular medicines and visits to the doctor. His money was stuck in the bank, and we also have our accounts with PMC, due to which none of us could take care of his medical requirements," Chris said.

Lobo had a business of fabrication in suburban Mulund till he discontinued it a few years ago, the grand nephew said, adding his accounts were with the Mulund branch.

The RBI has put an administrator on the bank and claims that 77 percent of the 16 lakh depositors can fully withdraw their money with the limits having being raised to Rs 40,000 per account.

The city police has pegged the overall size of the financial scam at the bank at Rs 4,355 crore and has arrested five people in connection of the case.

According to investigators, the bank management colluded with realty developer HDIL in such a way that loans were made to the company despite non-payments through specially created dummy accounts. These transactions were also allegedly hidden from the central bank's audit.

As a result, over 6,500 crore of the bank's overall advances of Rs 9,000 crore have turned sour.