Disclose if you intend to infuse funds to render financial support to PMC Bank: Delhi HC directs Central Government
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Disclose if you intend to infuse funds to render financial support to PMC Bank: Delhi HC directs Central Government

Aditi Singh

The Delhi High Court has directed the Ministry of Finance, Central Government to disclose if it intends to infuse funds to render financial support to Punjab & Maharashtra Co-operative Bank Ltd (PMC Bank). (Sandeep Bhalla vs RBI)

The order was passed by a single Judge Bench of Justice Rajiv Shakdher in a plea seeking a direction to Reserve Bank of India (RBI) to issue a statement on timeliness and safety of deposits held by the depositors with the PMC Bank.

The plea by one of the depositors, Sandeep Bhalla further prayed for a direction to ensure payments to the depositors along with interest.

Direction was also sought to allow depositors, particularly senior citizens to withdraw amounts up to the interest on their deposits for their sustenance.

The plea forms part of a petition concerning the fate of the deposits made with the PMC Bank.

After hearing the parties concerned, the Court opined that for the moment, certain directions were required to be issued.

The Court directed the Administrator of PMC Bank to file a status report, indicating whether or not the sale of assets of the promoter-directors of HDIL, Rakesh Wadhawan and Sarang Wadhawan, has taken place.

In case, the sale of assets has taken place, the status report will, inter alia, indicate the amount that has been garnered and the assets sold, the Court said.

In the status report, the Court has also asked for the details of the assets which have not been sold.

"The market value and the realizable value will be set out in the status report. Status report will indicate as to the steps taken for the sale of these assets.", it said.

The Court further directed the Ministry of Finance, Central Government to file an affidavit, stating whether it intends to infuse funds to render financial support to respondent PMC Bank.

This direction was issued in the context of an argument raised by Bhalla that recently, the Central Government had infused funds in a private bank i.e. Yes Bank.

The Court has sought the status report and affidavit within the next four weeks.

The matter would be heard next on June 25.

Senior Advocate Jayant Bhushan with Advocates HS Parihar, Kuldeep Parihar appeared for RBI.

Central Government was represented by Standing Counsel Jasmeet Singh.

Read the order:

Sandeep Bhalla vs RBI.pdf
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