Home >News >India >PMC Bank should consider liquidating some assets of Wadhawans, observes Delhi HC
Depositors lost large sums following the PMC Bank crisis.
Depositors lost large sums following the PMC Bank crisis.

PMC Bank should consider liquidating some assets of Wadhawans, observes Delhi HC

  • The sale of assets will enable distribution of the proceeds amongst the depositors. The next date of hearing is 15 Sep
  • The petitioners want RBI to ensure PMC depositors are paid in full, just the way their counterparts in Yes Bank were

NEW DELHI: The Delhi High court has observed that the Administrator in charge of Punjab & Maharashtra Co-operative Bank (PMC Bank) should consider liquidating at least some assets belonging to Wadhawans, the family behind HDIL that allegedly committed the fraud on the lender. The counsel, appearing for the Administrator, said he will discuss this with the latter.

The sale of assets will enable distribution of the proceeds amongst the depositors, the court observed on 6 August. The next date of hearing is on 15 September.

An affidavit, in that regard, will be filed with the Court before the next date of hearing. The affidavit will also indicate as to whether any complaint has been filed by the Administrator with the police for initiating criminal action against the Wadhawans.

The order comes on a plea by petitioner Sandeep Bhalla and others seeking directions to Reserve Bank of India (RBI) to issue a statement on safety of deposits held with PMC and to ensure depositors are paid their money in full along with interest.

On the last date of hearing, the court had directed the RBI and the Central government to file additional affidavits bringing on record the documents to establish reasons which propelled forging of the Yes bank Reconstruction Scheme, 2020. The affidavits were supposed to delve into the aspect as to how the depositors of PMC Bank are differently circumstanced in comparison to the depositors of Yes Bank.

In the case of Yes Bank, the RBI effected a State Bank of India-led takeover of the bank in March to save it from collapse. Since then, the bank has raised more money while cleaning its balance sheet. The common man was saved from losing their deposits, an outcome the PMC deposit holders are still unsure of in their case.

The administrator of Punjab and Maharashtra Co-operative Bank Limited was also directed to file a status report pursuant to a ‪18 May‬ order which was supposed to indicate whether or not the sales or assets of the promoter- directors of HDIL has taken place and other aspects to it. The counsel appearing on behalf of the Administrator had said that up until now none of the assets of PMC Bank which have been seized have been liquidated.

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

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePapermint is now on Telegram. Join mint channel in your Telegram and stay updated

Close
×
My Reads Redeem a Gift Card Logout