RBI starts valuation of HDIL properties; relief likely for PMC Bank depositors
The depositors of Punjab and Maharashtra Co-operative (PMC) bank can expect some relief in the coming weeks as the Reserve Bank of India (RBI) appointed experts have started valuating the Housing development infrastructure Limited (HDIL) properties, which were mortgaged with the Bank, so that they can be auctioned. Once the properties are auctioned the money will be infused in the bank to pay the depositors.
The RBI last month put restrictions on the PMC bank, blocking the saving of thousands of depositors, after it came under scanner for extending questionable loans to HDIL. The fraud was exposed after the RBI found out that the HDIL had allegedly created more than 21,000 fictitious accounts to hide over Rs 4,300 crore of loans extended to almost-bankrupt HDIL.
A senior Mumbai police officer who is in the know of the developments said that two days ago the PMC Bank’s RBI administrator appointed valuer had started the process of valuation. Once the valuation is done, the base price of the properties will be decided and advertisement for their auctioning will be published in newspapers.
Sources said that the Mumbai Police’s Economic Offences Wing (EOW) has requested RBI administrator to initiate auctioning of valued properties in phased manner at the earliest and not to wait for auctioning all the properties in bulk.
The RBI administrator had on Wednesday written to EOW seeking a no-objection certificate for auctioning the mortgaged properties. EOW has attached HDIL’s properties worth nearly Rs 4,000 crores.
“We will move an application in the court in a day or two to de-attach those properties mortgaged with the bank. Once court grants the permission the bank can auction the properties under SARFAESI Act,” said a senior police officer.
The EOW earlier had also moved an application in the court seeking auctioning of HDIL promoters Wadhwans’ movable and perishable properties under section 102 of Criminal Procedure Code (CrPC).
The properties include a Yacht, two aircraft, 14 vehicles and are not mortgaged with the bank. But as Wadhwans had already given their consent to sell off these properties to pay the bank, EOW is looking for auctioning these properties to provide relief to depositors as early as possible.
Provisional forensic report
The EOW has also received a provisional forensic audit report from the auditors. The final report may take a fortnight more. The cops have not revealed the findings of the report. But they are hopeful that it will give them detail information on money trail and also provide crucial information on checking the involvement of the 12 directors of the bank.