Depositors lost large sums following the PMC Bank crisis
Depositors lost large sums following the PMC Bank crisis

PMC Bank Case: RBI moves SC against Bombay HC order to sell HDIL assets

  • According to RBI, sale of HDIL assets would dent its attempts to revive the bank, which has been hit by a 6,500-crore scam
  • Last month, the Bombay HC had ordered liquidating the assets of the infrastructure company to settle dues of depositors of PMC Bank

Reserve Bank of India (RBI) on Tuesday moved the Supreme Court against Bombay High Court, which had ordered sale of assets owned by bankrupt Housing Development and Infrastructure Ltd (HDIL) to repay dues of Punjab and Maharashtra Bank Co-operative (PMC) Bank.

According to the Reserve Bank, sale of HDIL's assets would dent its attempts to revive the bank, which has been hit by a 6,500-crore scam. The Bombay HC's order goes against the RBI's efforts.

Today, a bench headed by Chief Justice of India SA Bobde asked the central bank to approach the registry for listing.

Last month, the Bombay HC had ordered liquidating the assets of the infrastructure company to settle dues of depositors of PMC Bank.

The high court had also appointed a three-member committee to assess the value of encumbered assets and sell them for speedy recovery of dues payable by the firm to the crisis-hit bank.

The high court had allowed the sale of HDIL's assets after a public interest litigation (PIL) was filed, seeking formation of a committee with a retired judge as its head to dispose off property of HDIL.

Nearly two-thirds of the PMC Bank's total loan book is exposed to HDIL.

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