PMC Bank case: SC stays Bombay High Court order directing sale of HDIL assets to repay dues of co-operative lender

The Supreme Court on Friday stayed the Bombay High Court order directing sale of bankrupt Housing Development and Infrastructure Ltd (HDIL) to ensure repayment of dues of crisis-hit Punjab and Maharashtra Cooperative Bank

Press Trust of India February 07, 2020 14:07:21 IST
PMC Bank case: SC stays Bombay High Court order directing sale of HDIL assets to repay dues of co-operative lender
  • A bench comprising Chief Justice S A Bobde and justices B R Gavai and Surya Kant took note of the appeal of the Reserve Bank of India against the Bombay High Court order

  • The top court also issued notice on RBI's plea to parties, including Sarosh Damania, who had approached the Bombay High Court for ensuring payment of dues to PMC Bank account holders

  • Earlier, the Bombay High Court had set up a three-member committee for valuating and sale of encumbered assets of HDIL to expeditiously recover dues payable by the firm to PMC Bank

New Delhi: The Supreme Court on Friday stayed the Bombay High Court order directing sale of bankrupt Housing Development and Infrastructure Ltd (HDIL) to ensure repayment of dues of crisis-hit Punjab and Maharashtra Cooperative Bank.

A bench comprising Chief Justice S A Bobde and justices B R Gavai and Surya Kant took note of the appeal of the Reserve Bank of India against the Bombay High Court order.

The top court also issued notice on RBI's plea to parties, including Sarosh Damania, who had approached the Bombay High Court for ensuring payment of dues to PMC Bank account holders.

Earlier, the Bombay High Court had set up a three-member committee for valuating and sale of encumbered assets of HDIL to expeditiously recover dues payable by the firm to PMC Bank.

The high court had passed the order while hearing a PIL seeking direction for expeditious disposal of HDIL assets and properties attached by the Economic Offence Wing and the Enforcement Directorate and repaying PMC Bank depositors at the earliest.

The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that it had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to HDIL.

According to RBI, the PMC Bank masked 44 problematic loan accounts, including those of HDIL, by tampering with its core banking system, and the accounts were accessible only to limited staff members.

The Mumbai Police's Economic Offences Wing and the ED registered offences against senior bank officials and HDIL promoters.

Updated Date:

also read

Supreme Court seeks fresh status report on security measures, relief of people affected by violence in Manipur
India

Supreme Court seeks fresh status report on security measures, relief of people affected by violence in Manipur

Centre and the State government told the top court that a status report has been filed and the situation had improved in the State

Pakistan: Court extends bar on Imran Khan's arrest till May 31
World

Pakistan: Court extends bar on Imran Khan's arrest till May 31

The court was hearing PTI's plea seeking details of all the cases filed against Imran Khan, whose party said the PTI chief was booked in over 100 cases across the country

SC declines PIL seeking new Parliament building inauguration by President Droupadi Murmu
India

SC declines PIL seeking new Parliament building inauguration by President Droupadi Murmu

Solicitor General Tushar Mehta, appearing for the Centre, said if the petition is allowed to be withdrawn, then it will be filed in the high court. The bench then dismissed the petition as withdrawn.