RBI moves SC challenging Bombay HC order to sell HDIL assets to recover PMC dues

The Reserve Bank of India (RBI) on Tuesday approached the Supreme Court challenging a Bombay High Court order which had earlier directed for the sale of HDIL assets to recover the dues of crisis-hit PMC Bank.

A three-judge bench headed by Chief Justice of India (CJI) SA Bobde asked Advocate Rakesh Dwivedi, who mentioned the matter before the court, to approach the SC Registry for an urgent listing.

The Bombay High Court, had on January 15, appointed a three-member committee headed by retired Judge S Radhakrishnan to sell the encumbered assets of Housing Development Infrastructure Limited (HDIL) to expeditiously recover dues payable to crisis-hit Punjab and Maharashtra Bank Co-operative (PMC).

In September last year, the RBI restricted the activities of the PMC Bank for six months and asked it not to grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits after an alleged fraud of Rs 4,355 crore came to light.

The central bank had initially capped the deposit withdrawal at Rs 10,000 but later raised it to Rs 40,000. The Enforcement Directorate (ED) has seized and identified movable and immovable assets worth more than Rs 3,830 crore owned by HDIL in connection with the case.