No SC Respite For PMC Depositors As Court Turns Down PIL Seeking Lifting Of Cash Withdrawal Limits

In a setback to the lakhs of depositors at the scam-hit Punjab & Maharashtra Co-operative Bank (PMC Bank), the Supreme Court has refused to accept a PIL seeking directions for redressal of some of the grievances.

The court was hearing a petition filed by Delhi-based Bejon Kumar Misra, who has said that the RBI's move has caused disastrous consequences for depositors.?

He had sought the lifting of restrictions on cash withdrawals that have been capped at Rs 40,000 over a six-month period.

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The petitioner also alleged that the Centre and the RBI had not taken any emergency steps towards the protection of the hard-earned money of around 15 lakh customers of PMC Bank.

The plea requested the court to issue an exhaustive and comprehensive guideline to safeguard the banking and co-operative deposits in the eventuality of the emergency financial crisis where common people are financially stranded by the acts of few unscrupulous persons which eventually leading to various personal irreversible catastrophes.

During the hearing on Friday, Solicitor General Tushar Mehta said the government is aware of the seriousness of the situation and the Enforcement Directorate is taking appropriate action against the culprit.

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A bench headed by Chief Justice of India Ranjan Gogoi said, "We are not inclined to entertain this petition under Article 32 (writ jurisdiction). The petitioner can approach the high court concerned for appropriate relief".

The RBI had imposed tight restrictions on the PMC Bank, including on cash withdrawals after a Rs 4,355-crore scam in the bank was discovered.?

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Top executives of the bank including former Chairman and MD along with Rakesh and Sarang Wadhawan the promoters of HDIL have been sent to jail as the investigation continues.

Meanwhile, lakhs of investors who have their entire life's savings locked up in the bank are continuing to struggle.

This week three PMC depositors had died, two of cardiac arrests and one committed suicide.??