PMC Bank and Delhi HC
PMC Bank and Delhi HC
Litigation News

[COVID-19] Delhi HC issues notice in plea to allow PMC Bank depositors to withdraw up to Rs 5 lakh

The plea forms part of a petition by one Bejon Mishra to insure the deposits of customers of PMC Bank branches in the capital.

Aditi Singh

The Delhi High Court today issued notice in an application seeking a direction to allow the depositors of Punjab & Maharashtra Co-operative Bank (PMC Bank) to withdraw up to Rs 5 lakh during the COVID-19 emergency.

The plea forms part of a petition by one Bejon Mishra to insure the deposits of customers of PMC Bank branches in the capital.

Notice was issued to the Central Governement and Reserve Bank of India by a Division Bench of Chief Justice DN Patel and Justice Prateek Jalan.

Certain depositors of PMC bank had made representations to the Respondent authorities explaining their hardships amid the pandemic due to the moratorium on withdrawal of amount from the bank.

The application was filed after the representation was rejected.

"..the respondents had permitted for special withdrawal limit towards Medical Expenses upto Rs.5,00,000/- for critical life-threatening ailments. However, the respondents have miserably failed to follow even its own notification by refusing to disburse the said amount to the depositors of the PMC Bank based on expenses incurred on medical care.", it is alleged.

It is argued that due to the conduct of the Respondents, financial liabilities of the depositors are accruing day-by-day, pushing some to even take their own lives.

"So far, as per the news reports, there are more than thirty-five depositors have fallen victim and had been constrained to end their lives under extreme financial circumstances."

The application also points out that while the depositors of YES Bank have been rescued, the depositors of PMC Bank are under serious distress.

The application states,

Despite the similarity of the financial crisis, the duality of approach by the respondents in tackling the situation shows clear cut discrimination and arbitrariness towards the depositors of PMC bank. Hence, such approach is clear-cut violation of Article 14 of the Constitution of India as their acts are discriminatory against the innocent depositors of PMC Bank.

The application thus prays for a direction to the authorities to favourably decide the request of depositors to withdraw money to meet their medical needs, without subjecting them to any cumbersome process.

Advocate Shashank Deo Sudhi appeared for the Applicant.

The matter would be heard next on August 19.

Bar and Bench - Indian Legal news