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PMC Bank: Customers file police complaint against chairman, directors for misappropriation of funds

PMC Bank crisis: Customers have also written to the RBI to revoke the restrictions made on the lender. The letter states that such a restriction will inflict great hardship on the depositors.

twitter-logo BusinessToday.In   New Delhi     Last Updated: September 26, 2019  | 13:44 IST
PMC Bank: Customers file police complaint against chairman, directors for misappropriation of funds
PMC Bank crisis: Customers file police complaint

Distraught customers of Punjab and Maharashtra Co-operative Bank (PMC) filed a joint police complaint against the bank's chairman and directors for alleged misappropriation of funds of the depositors. A delegation of account-holders went to Sion police station in central Mumbai and submitted the complaint against officials of the bank, on which the RBI has imposed operational restrictions. The customers stated that at least 14 people were involved in the alleged misappropriation of funds. They also sought an explanation from the management.

Congress leader Sanjay Nirupam had also said on Thursday morning that he would go to the head office of the PMC Bank with a delegation of customers, while BJP leader Kirit Somaiya is heading to the crime branch to file a case against management of the bank.

Users have also taken to social media to voice their concerns and ask why the depositors should pay for the bank's actions. Some even said that similar action could be taken on other banks and no one's money is truly safe.

Following such mentions on social media, RBI issued a statement on Twitter and said that such reports are false. "Reports appearing in some sections of social media about RBI closing down certain commercial banks are false," it tweeted. 

PMC Bank depositors have also written to the RBI to revoke the restrictions made on the lender. The letter states that such a restriction will inflict "great hardship" on the customers.

PMC Bank MD Joy Thomas stated that while there are divergences in NPAs, RBI's action was too harsh. "RBI could have restricted only the lending," he said.

According to reports, the bank has been put under the restriction after RBI termed PMC Bank's loan to Housing Development and Infrastructure Limited (HDIL) as a "complete loss". The bank had extended a loan of Rs 2,500 crore to the now-bankrupt real estate firm, HDIL, and did not classify the loan as a bad loan despite the firm's default on payments. An investigation in connection with the case is underway and more details are likely to be revealed after that.

Also read: PMC Bank crisis: Rs 2,500-crore loan to HDIL biggest reason behind RBI clampdown, says report

Also read: PMC Bank customers' money safe, RBI action too harsh, says MD Joy Thomas

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Tags: PMC Bank | RBI
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