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PMC scam: Delhi HC seeks replies from Centre, RBI and others on capping of withdrawal limits

The Delhi High Court on Friday sought replies from Centre, Reserve Bank of India and others on a petition objecting to the withdrawal limits as mandated by scam-hit Punjab and Maharashtra Cooperative (PMC) Bank.

The plea which has further sought insurance of the depositors’ money was listed for next hearing to Jan 22, 2020.

PMC Bank has been hit by a scam wherein allegedly dummy account holders were created to conceal Non-performing assets.

After the scam came into the light, bank regulator RBI put several restrictions on PMC under the Section 35A of the Banking Regulation Act and capping cash withdrawals from the bank.

Economic Offences Wing (EoW) of Mumbai Police had registered the FIR against the senior officials of PMC bank and Housing Development and Infrastructure Ltd (HDIL) over allegedly causing losses to the tune of Rs 4,355.43 crore to the bank.

It had registered the FIR under Sections 409 (criminal breach of trust by a public servant or banker), 420 (cheating), and 465, 466 and 471 (related to forgery) of the Indian Penal Code along with 120 (b) (criminal conspiracy).

The Mumbai court taking cognizance of the FIR had remanded former chairman of the PMC Bank S Waryam Singh to police custody.

—India Legal Bureau  

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