Mumbai, October 12: Two days after facing the angry accountholders of ailing Punjab Maharashtra Co-operative (PMC) Bank, Union Minister Nirmala Sitharaman on Saturday met the Reserve Bank of India Governor Shaktikanta Das, who assured her that clients and their concerns would be kept on top priority. Sitharaman stated that the Union Finance Ministry understands the "justified worries" of the customers. Making her step forward to calm down the tensed depositors of PMC Bank, Sitharaman assured that the customers concerns are comprehensively addressed.
With situation blowing out of proportion and depositors asking the Union Finance Ministry to take action against the perpetrators of PMC Bank crisis, Union Minister stated that her ministry is doing everything to address the issue. After meeting Das on Saturday, Sitharaman took to Twitter and wrote, "Spoken to governor @RBI on the #PMCBank matter. He assured me that clients & their concerns will be kept on top priority. I wish to reiterate that @FinMinIndia will ensure that customers concerns are comprehensively addressed. We understand the justified worries of the customers." PMC Bank Fraud: Nirmala Sitharaman Meets Depositors After Facing Protest, Assures Regulations If Necessary.
Here's Nirmala Sitharaman's tweet:
Spoken to governor @RBI on the #PMCBank matter. He assured me that clients & their concerns will be kept on top priority. I wish to reiterate that @FinMinIndia will ensure that customers concerns are comprehensively addressed. We understand the justified worries of the customers.
— Nirmala Sitharaman (@nsitharaman) October 12, 2019
Earlier on Thursday, the Union Minister had to face the wrath of distressed depositors of PMC Bank in Mumbai's Nariman Point, when she arrived there to listen to their worries. Though she stated that Finance Ministry may have nothing to do with it (PMC bank matter) directly because RBI is the regulator, she indicated to bring regulations or amendments in the upcoming Winter Session of Parliament to address the issue. PMC Bank Crisis: Joy Thomas, Suspended Bank Chief, Admits to Have Hid Info About Stressed HDIL Accounts From RBI.
Apart from this, she had also mentioned that, but from my side, I have asked the secretaries of my ministry to work with the Rural Development Ministry and Urban Development Ministry to study in detail as to what is happening." Meanwhile, reports arrived that central probing agency Enforcement Directorate (ED) on Friday have traced 2,100 acres of land estimated to be around Rs 3,500 crore, which is allegedly controlled by HDIL and its promoter Rakesh Wadhawan and son Sarang.
Documents state that the Wadhawans bought these land parcels -- located in even different villages in Vasai-Palghar belt -- for a township in Vasai-Palghar area. However, these projects never took off. ED is also looking at the aspect whether these lands purchased on the individual name of Wadhawans or in the name of HDIL.
Another report, published in the Economic Times, states that HDIL and its promoters had mortgaged around 600 acres of land to PMC Bank, rest 400 acres were mortgaged to other banks. Estimates say that loans worth nearly Rs 800 crore were taken against these land parcels from PMC and other banks. Rolls Royce, Bentley Continental, Land Rovers, Mercedes of HDIL Promoters Rakesh and Sarang Wadhawan seized by ED in PMC Bank Case.
In joint raids with the Mumbai Police Economic Offence Wing at several properties of the Wadhawans and their family members, ED had seized two private business jets, including a nine-seater Dassault Falcon 200 and a Bombardier Challenger 300. Also, the probing agency raided their house spread in two-and-half acre on Alibag's Awas beach and seized 15 cars, including Rolls Royce, and Bentley. Also, three SUVs -- Audi, Toyota Fortuner, Toyota Innova -- all-terrain bikes, a speedboat, and two golf carts were also seized. PMC Bank Crisis to Impact Maharashtra Assembly Elections 2019? Depositors Seek Access to Their Money with Placards Saying 'No Solution, No Vote'.
Apart from the raids, EOW arrested ex-Chairman of PMC Bank S Waryam Singh last Saturday. On October 3, the police nabbed HDIL Chairman and Managing Director Rakesh Kumar Wadhwan and Sarang Wadhawan, respectively, and froze their assets worth Rs 3,500 crore. Meanwhile, on October 3, RBI had raised the withdrawal limit to Rs 25,000 from Rs 10,000. While RBI maintained the restrictions on PMC Bank which includes granting or renewing loans and advances, making any investments, incurring any liability, including borrowal of funds or accepting fresh deposits, among others, without the prior written approval.