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HC asks Centre if it intends to infuse funds to support scam-hit PMC Bank

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Press Trust of India  |  New Delhi 

The Delhi High Court has directed the Centre and Ministry of Finance to disclose if it intends to infuse funds to render support to scam-hit Punjab and Maharashtra Cooperative (PMC) Bank.

Justice Rajiv Shakdher, who conducted the hearing through video conferencing, asked the administrator of the bank to file a status report which shall indicate whether or not the sale of assets of the promoter-directors of HDIL has taken place.

In case the sale of assets has taken place, the status report will also indicate the amount garnered and the assets sold, the high court said.

Two directors -- Rakesh Wadhawan and his son Sarang Wadhawan -- of Housing Development and Infrastructure Ltd (HDIL) were earlier arrested in the PMC bank scam case.

In September last year, the Reserve Bank of India (RBI) had imposed restrictions on PMC Bank and also superseded the board and management of the bank and appointed an ex-RBI official as the administrator.

An argument was raised by the petitioner that, recently, the Centre had infused funds in a scam-hit private bank, Yes Bank.

The high court was hearing a plea by Sandeep Bhalla seeking direction to the RBI to issue a statement on timelines and safety of deposits held by the depositors with the PMC Bank and to ensure payments are made to depositors in full along with interest.

The plea also sought direction to the RBI to allow the petitioners and depositors particularly senior citizens to withdraw amounts up to the interest on their deposits to enable them to make their living.

The plea was filed in a pending petition concerning the fate of the deposits made with the PMC Bank.

The high court, in its order, said The Union of India, Ministry of Finance, will file an affidavit indicating as to whether it intends infusing funds to render financial support to respondent no. 2 (PMC Bank). This direction has been issued in the context of an argument raised by petitioner no.1 that, recently, respondent no.3 (Centre) had infused funds in a private bank, that is, Yes Bank.

The high court also said that the administrator's status report will also give the details of the HCIL promotors' assets which have not been sold.

The market value and the realisable value will be set out in the status report. Status report will indicate as to the steps taken for the sale of these assets, it said, adding that the report be filed within four weeks and listed the matter for further hearing on June 25.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 19 2020. 16:53 IST
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