In late September, the RBI had restricted activities of PMC Bank for six months and asked it not to grant or renew any loans and advances, make any investment or incur any liability, including borrowal of funds and acceptance of fresh deposits.
Solicitor General Tushar Mehta, appearing for the Centre, informed the court that the government shares the concern of PMC bank account holders and are taking effective steps to attach the properties of wrongdoers among PMC bank officials.
Two PMC Bank customers have died within 24 hours, including one Fattomal Punjabi and a 51-year-old former employee of Jet Airways named Sanjay Gulati.
On Monday, a 51-year-old former employee of Jet Airways, Sanjay Gulati, who had deposits worth Rs 90 lakh in the Punjab and Maharashtra Co-operative (PMC) Bank, died hours after participating in a protest rally by depositors here.
This is the third time the regulator has increased the withdrawal limit since it clamped down on PMC Bank on September 23, capping withdrawals at Rs 1,000 per customer, which led to a lot of distress and criticism.
Based on a complaint filed by the bank against its officials and borrowers associated with the fraud/financial irregularities in the bank and manipulation of its books of accounts, the Economic Offences Wing, Maharashtra Police, has started its investigations into the matter.
Last month, the RBI restricted the activities of the PMC Bank for six months and asked it to not grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits.
The FIR was registered under Sections 409 (criminal breach of trust), 420 (cheating), 465 (forgery), 466 (forgery of record of court or public register), 471 (using a forged document as genuine) and 120B (criminal conspiracy).
HDIL promoters Rakesh Wadhawan, Sarang Wadhawan arrested; assets worth Rs 3,500 crore attached.
The decision of the Government to merge some of the banks have made big news, while the public's outrage was seen when the limit to withdraw money was lowered down to Rs 1000 from the PMC by RBI.