Appreciate difficulties of PMC bank depositors: HC

Appreciate difficulties of PMC bank depositors on moratorium on withdrawals: Delhi HC to Centre, RBI

The Delhi High Court has asked the Centre and Reserve Bank of India (RBI) to appreciate the difficulties faced by depositors of scam-hit Punjab and Maharashtra Cooperative (PMC) Bank Ltd with regard to the moratorium on withdrawals during COVID-19 pandemic.

A bench of Chief Justice D N Patel and Justice Prateek Jalan said upon receipt of any representation from any individual or group of depositors in this regard, "a decision shall be taken by the concerned respondent authority within a period of four weeks".

Consumer rights activist, Bejon Kumar Misra, had filed the petition seeking directions to RBI to ease out the moratorium for withdrawal of deposited money of depositors from PMC Bank during the coronavirus pandemic.

The PMC Bank has been put under restrictions by the RBI, following the unearthing of a Rs 4,355-crore scam.  

Misra, in his plea filed through advocate Shashank Deo Sudhi, had also sought a direction for permitting immediate withdrawal of at least the insured amount of Rs five lakhs "to cater to the medical and other urgent needs of depositors of PMC Bank during such health crisis".

After hearing all sides in the matter, the bench said,"We direct the concerned respondents to appreciate the difficulties raised by the applicant/petitioner with respect to the moratorium on withdrawal and decide the same in accordance with law, rules, regulations and government policy applicable to the facts of the case."

The application was filed in Misra main's petition seeking removal of restrictions on cash withdrawals from PMC Bank.

The main petition was to be heard on April 21, but due to the lockdown and limited functioning of the high court has been adjourned to June.

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