PMC Bank Scam: SC refuses to direct RBI against putting restriction on withdrawal of money; Asks depositors to approach HC

New Delhi, October 18: In its first hearing over the PMC Bank crisis, the Supreme Court on Friday moved up to refuse entertain petition, filed by some account holders in the PMC Bank, seeking direction to RBI against putting restriction on withdrawal of money.

 

 

While around Rs 10.5 crore cash goes reportedly missing from the bank's record, the apex court has directed the account holders to approach the high court for concerned relief. Solicitor general Tushar Mehta meanwhile informed the court that the government was concerned about this and was taking necessary steps.

 

The petitioners had approached the Supreme Court earlier this week seeking redressal of certain aspects associated with the crisis. They alleged that the Centre and the Reserve bank of India had not taken any emergency steps towards the protection of the hard earned money of around 15 lakh customers of the PMC Bank.

 

PMC Bank began entering the crisis spectrum after an alleged Rs 4,500 crore scam came to light last month. The RBI has capped withdrawals from the bank at Rs 1,000 and later increased it to Rs 25,000 following protests by depositors. The bank had allegedly lent over 70 per cent of its Rs 9,000 crore in loans to near-bankrupt realty player HDIL.