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PMC bank scam: Delhi HC asks RBI to file reply to PIL on withdrawal limit

Forum Gandhi | Updated on November 01, 2019 Published on November 01, 2019

File photo   -  Emmanual Yogini

The Delhi High Court (HC) on Friday has asked the Reserve Bank of India to file a reply to the Public Interest Litigation (PIL) filed for seeking removal of restrictions on the withdrawal amount from PMC Bank.

The PIL has been filed by Bejon Kumar Misra, activist seeking directions on removal of the withdrawal limit, insurance to depositors and a committee to ensure proper functioning for cooperative banks. The PIL was reviewed by BusinessLine. Along with RBI, branches of PMC bank, Ministry of finance, and the Central Government has also been given a  notice. The Delhi High Court has given four weeks for the said parties to respond to the notice. The matter will be heard on January 21.

Speaking to BusinessLine, Shashank Deo Sudhi, the advocate representing Misra said, "The judges heard our plea, and understood its importance. The court has accepted all our pleas and asked RBI to file a reply to the same."

After a complaint was made to RBI against a defaulting loan Housing Development Infrastructure Limited's (HDIL) loan default came to the surface, the RBI had put a cap on withdrawal of money by depositors in September. Initially the withdrawal limit was Rs 1,000 which has been increased to Rs 40,000 withing six months.

In the said case, the promoters of HDIL, along with directors, MD and Chairman of PMC bank have been arrested. Currently, all are in Judicial Custody after being interrogated by the Economic Offenses Wing (EOW) of Mumbai Police.

Published on November 01, 2019
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