‘Liquidate HDIL assets soon to recover depositors’ money’

The commissioner of police (CP) Sanjay Barve has requested the Reserve Bank of India (RBI) to expedite the process of liquidating Housing Development and Infrastructure

The commissioner of police (CP) Sanjay Barve has requested the Reserve Bank of India (RBI) to expedite the process of liquidating Housing Development and Infrastructure Limited’s (HDIL) securities with Punjab and Maharashtra Co-operative (PMC) Bank, in order to ensure faster recovery of the depositors’ money, revealed an officer part of the special investigation team (SIT). The SIT is probing the ₹4,355-crore scam allegedly carried out at the bank.

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An economic offences wing (EOW) officer, who is part of the SIT, said on condition of anonymity, “As part of the police’s efforts to give relief and justice to the depositors of the crisis-hit PMC Bank, the CP recently spoke to a concerned RBI official and stressed on the recovery from the defaulted borrower.”

Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, banks and other financial institutions may auction properties a defaulter to recover dues. The police has already moved court, seeking permission to auction some of HDIL’s and its promoters’ – Rakesh Kumar and Sarang Wadhawan – perishable properties. The Wadhawans have given their consent before the RBI administrator JB Bhoria to their properties being liquidated to pay PMC Bank back.

Barve, who met PMC Bank depositors at the police headquarters on October 16 and apprised them of the progress made in the case, did not respond when contacted.

The EOW has arrested the Wadhawans, ex-managing director Joy Thomas and ex-chairperson Waryam Singh) and a former member of the bank’s board of directors Surjit Singh Arora. They are in judicial custody.