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Sunday, Nov 17, 2019

‘Approach high court’: Supreme Court on PMC Bank account holders’ plea

Solicitor General Tushar Mehta said the government is aware of the seriousness of the situation and the Enforcement Directorate is taking appropriate action against the culprit.

india Updated: Oct 18, 2019 12:40 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
(REUTERS FILE/ Representative Image)
         

The Supreme Court on Friday refused to entertain a plea filed on behalf of scam-hit PMC Bank account holders seeking lifting of restrictions imposed by the Reserve Bank of India (RBI) on cash withdrawals.

The banking regulator on Monday raised the withdrawal limit for PMC bank account holders from Rs 25,000 to Rs 40,000 after finance minister Nirmala Sitharaman reached out to central bank governor Shaktikanta Das.

“We understand the justified worries of the customers,” Nirmala Sitharaman tweeted on Saturday soon after she made the phone call to the RBI governor.

A bench headed by Chief Justice of India Ranjan Gogoi said, “We are not inclined to entertain this petition under article 32 (writ jurisdiction). Petitioner can approach the high court concerned for appropriate relief”.

Solicitor General Tushar Mehta said the government is aware of the seriousness of the situation and the Enforcement Directorate is taking appropriate action against the culprit.

Advocate Shashank Sudhi, appearing for petitioner Bejon Kumar Mishra, said he has filed the petition on behalf of 500 Punjab & Maharashtra Co-operative Bank account holders seeking lifting of restrictions imposed by the RBI on cash withdrawals.

Last month, the RBI had imposed severe restrictions on withdrawals by depositors after the Rs 4,355 crore the PMC bank fraud came to light.

The PMC Bank’s officials had loaned 73% of the bank’s total loan book to the Mumbai-based Housing Development and Infrastructure Ltd (HDIL). Out of the Rs 4,355.46 crore of loans under the scanner, around Rs 2,145.78 crore were transferred to accounts held by HDIL, once considered the third-largest realty developer in India.