There Could Be Relief For Depositors In Scam-Hit PMC Bank As HDIL Promoters Agree To Sell Their Property To Repay Loans

There could be some good news on the way for thousands of ordinary depositors in the scam-hit Punjab and Maharashtra Co-operative Bank (PMC) who had been running from pillar-to-post to get their money back.

This after the promoters of the now-bankrupt Housing Development and Infrastructure Limited (HDIL) has sought to sell off their assets, including a yacht, a Rolls Royce and an aircraft, to pay off the bank's dues.

BCCL

The father-son duo, Rakesh and Sarang Wadhawan the promoters of HDIL, are the two main accused in the Rs 4,355.43 crore financial scam at PMC Bank.

The duo who are currently remanded in judicial custody in connection with the case have written to the Enforcement Directorate, the Union finance ministry and the RBI, requested that they be allowed to sell off 18 of their attached assets.

"We state that while denying the allegations raised in FIR no. 86/ 2019...solely with the purpose to work towards the resolution of the matter in the interest of depositors which was also communicated vide our earlier letters dated September 30, 2019, October 1, 2019 and October 3, 2019 sent to (ministry of Finance, Reserve bank of India), we request you to immediately take steps to sell the assets mentioned below... and adjust it towards the principal of the loans taken by the respective companies which own the assets...," the letter signed by the arrested father and son duo read.

The assets listed in the letter include ultra-luxury cars such as a Rolls Royce Phantom, Bentley Continental, a BMW 730LD, as well as a humble Ambassador, owned by Rakesh Wadhawan.

It also lists assets owned by Sarang, Rakesh's son, including a Falcon 2000 Aircraft, Audi AG, a FerrttiYacht 881, two electric cars, three Quad Bikes (ATV) and speed boat (Dolphin super deluxe 31HT, 7 seater).

"It is in the larger public interest that the assets are disposed of so as to mitigate the present situation," said the letter.

AP

The settlement of loans by HDIL will come as a welcome relief for the thousands of account holders who were caught off-guard when the RBI imposed a strict restriction on the bank, especially on cash withdrawals.

Initially, depositors were told that they can only withdraw a maximum of Rs. 10,000 from their PMC accounts over the next six months, which was raised to Rs. 25,000 and later to Rs 40,000.