Home >News >India >Delhi HC directs PMC Bank to file status report on asset sale of HDIL promoters

NEW DELHI: The Delhi high court has directed the administrator of Punjab and Maharashtra Co-operative Bank Limited to file a status report on the asset sale of promoters of Housing Development and Infrastructure (HDIL). The order was made available on Tuesday.

The order comes on a plea seeking directions to the Reserve Bank of India (RBI) to issue a statement on timeliness and safety of deposits held by depositors of PMC Bank.

The plea had also sought directions to RBI to issue necessary instructions to allow petitioners and depositors, particularly senior citizens, to withdraw amounts up to the interest on their deposits so as to enable them to make their living.

In case the sale of assets has been conducted, the status report will, inter alia, indicate the amount garnered and the assets sold, the court order added. The report should also provide detail of assets not sold, market value and realisable value and steps being taken to liquidate the assets.

The court has also directed the Ministry of Finance to will file an affidavit indicating whether it intends to infuse funds to render financial support to Punjab & Maharashtra Co-operative Bank Ltd.

The status report and affidavit have to be filed within the next four weeks, with copies marked to main petitioner as well as other counsels who appear on behalf of RBI, PMC Bank.

The matter would next be heard on 25 June.

On 24 September, the RBI had imposed restrictions on PMC Bank under Section 35A of the Banking Regulation Act, citing gross under reporting of bad loans, financial irregularities by the bank’s officials and failure of internal controls and systems.

The central bank had also superseded the board and the management of the bank and appointed an ex-RBI official as the administrator.

Nearly two-thirds of PMC Bank's loan book had exposure to Housing Development and Infrastructure.

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