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Monday, Dec 09, 2019

PMC Bank fraud: RBI, ED, EOW meet to speed up auctioning of HDIL’s assets

The officials also discussed the legal proceedings related to auctioning the assets. The funds from the auctions will be used to help the depositors and recover the bank from the crisis.

mumbai Updated: Nov 19, 2019 07:50 IST
Vijay Kumar Yadav
Vijay Kumar Yadav
Hindustan Times, Mumbai
PMC Bank account holders protested outside the Reserve Bank of India (RBI) , BKC, Bandra, in Mumbai
PMC Bank account holders protested outside the Reserve Bank of India (RBI) , BKC, Bandra, in Mumbai(Kunal Patil/Hindustan Times)
         

In a high-level meeting on Monday, the governor of the Reserve Bank of India (RBI), Mumbai police commissioner, chiefs of Enforcement Directorate (ED) and the economic offences wing (EOW) discussed auctioning of Housing Development and Infrastructure Limited’s (HDIL) attached assets in the Punjab Maharashtra Co-operative (PMC) Bank case.

RBI governor Shaktikant Das, police commissioner Sanjay Barve, ED director Sanjay Mishra, joint commissioner (EOW) Rajvardhan Sinha, ED’s joint director Satyabrata Kumar, deputy commissioner of police (special task force) Shrikant Paropkari and RBI administrator of PMC Bank, JS Bhoria attended the meeting at RBI’s headquarters in the city.

The officials also discussed the legal proceedings related to auctioning the assets, said an officer, who attended the meeting. The funds from the auctions will be used to help the depositors and recover the bank from the crisis.

A top IPS officer said that this is the first time that RBI officials are acting so speedily and working closely with enforcement authorities in auctioning assets in a major bank fraud case.

Former MP Kirit Somaiya, who met Maharashtra Governor Bhagat Singh Koshyari on Monday, said, “This meeting was important and it will help in the bank’s recovery and ease the problems of the account holders. The Governor has assured supplementary assistance to help the bank and account holders.”

Despite repeated calls and messages, RBI spokesperson Yogesh Dayal was unavailable for comment.

The ED, on Tuesday, is likely to file its say in the magistrate court on the EOW’s decision to auction HDIL’s moveable (perishable) assets. EOW had moved an application for the same in court and on Saturday had given ED two days to file its say.

Now, RBI-appointed administrator of PMC Bank has moved court and taken over the responsibility of auctioning the movable assets as well. Earlier, the RBI administrator was only concerned with auctioning the immovable assets as those were mortgaged with PMC Bank.

The movable properties include a yacht, two aircraft, and 14 vehicles. They are not mortgaged with PMC Bank. HDIL’s directors, Rakesh and Sarang Wadhawans had already given their consent to sell off these properties to pay the bank. The RBI has already started the process of evaluating the immovable properties of HDIL. If the court permits RBI to auction the movable assets as well, then they would appoint an evaluator to evaluate the movable assets.