PMC Bank case: Depositors protest as HC refuses to interfere with RBI order

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Hundreds of Punjab and Maharashtra Co-operative (PMC) Bank account holders protested outside the Bombay High Court on Tuesday after it refused to interfere into an RBI order restricting the limit of money withdrawal.

The protestors, who have petitioned in the court seeking relief on withdrawal limit, expressed dissatisfaction "with the manner the court was handling the case".

During the course of hearing, the high court said the petitioners can go to the RBI to get the Rs 50,000 withdrawal limit extended and refused to interfere into the RBI order.

The protestors raised slogans against the court, the RBI and PMC Bank. Traffic on the road outside the high court was adversely affected during the protest demonstration which was finally dispersed by the police.

On September 23, the Reserve Bank of India (RBI) had placed restrictions on the bank's transactions for six months after large scale irregularities were detected in the finances. It asked the PMC Bank not to grant or renew any loans and advances, make any investment or incur any liability after an alleged fraud of Rs 4,355 crore came to light.

Subsequently, the RBI capped the withdrawal limit for the PMC Bank depositors, which was gradually increased to Rs 50,000.

As evidence of huge amounts of money being granted to the Housing Development and Infrastructure Ltd (HDIL) group in the form of unsecured loans started coming to light, the Economic Offences Wing (EOW) and the Enforcement Directorate (ED) registered offences in the case.

As many as 11 account holders have died so far.

Earlier today, the Bombay High Court adjourned the hearing till December 4 after RBI filed a detailed affidavit regarding steps to be taken for protecting the interest of customers.

A Congress delegation headed by Mumbai unit president Eknath Gaikwad and vice president Charan Singh Sapra will be meeting Governor Bhagat Singh Koshyari today to discuss the PMC issue.