SC Turns Away PMC Account Holders Seeking End to Cash Withdrawal Restrictions

The Supreme Court refused to hear a plea filed on behalf of account holders in PMC Bank

The Supreme Court refused to hear a plea filed on behalf of account holders in PMC Bank, which has been put under restrictions by the Reserve Bank of India following the discovery of a Rs 4,355-crore scam.

Plea filed on behalf of the people whose money is blocked, for the lifting of restrictions on cash withdrawals that have been capped at Rs 40,000 over a six-month period.

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

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.

Advocate Shashank Sudhi, appearing for petitioner Bejon Kumar Mishra, said he has filed the petition on behalf of 500 PMC Bank account holders seeking lifting of restrictions imposed by the RBI on cash withdrawals.

Around 50 depositories of the PMC Bank staged a protest outside the RBI demanding revoking restrictions on cash withdrawal,currently capped at Rs 40,000 over a six-month period.

A depositor of PMC Bank allegedly committed suicide in Mumbai while another died of a heart attack a few hours after taking part in a protest by bank customers seeking their money back.

Plea said the Centre and the RBI should be directed to ensure complete insulation and insurance of the hard-earned deposited money of people in various cooperative banks,including nationalized banks,by enacting an appropriate measure of 100 per cent insurance coverage towards the deposited amount.

It said that a high-powered committee should be constituted to look into complete affairs of working and their operation in all cooperative banks in order to have a robust and transparent mechanism which can inspire confidence of common public in cooperative banks.

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