Inaction would lead to people consuming poison: Activist on PMC Bank scam

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Inaction would lead to people consuming poison: Activist on PMC Bank scam

Rakesh's post was in response to Union Finance Minister Nirmala Sitharaman who referring to the PMC Bank scam issued an appeal to the depositors

Tuesday October 1, 2019 8:20 AM, ummid.com News Network

Mumbai: Amidst strong unrest among the depositors after Punjab and Maharashtra Cooperative (PMC) Bank scam hit headlines last week, an activist while calling for government's immediate intervention said absence of quick action might lead people to consuming poison.

"Dear Madam, nothing new in this. We expect a quick resolution. There are ample ways to handle the crisis and this is least expected from GOI and RBI.Please accept this as the challenge and help otherwise people are bound to consume poison and die", Rakesh Bhat, whose profile says he is a Social Activist, wrote on Twitter.

Dear Madam, nothing new in this. We expect a quick resolution. There are ample ways to handle the crisis and this is least expected from GOI and RBI.Please accept this as the challenge and help otherwise people are bound to consume poison and die.Rakesh Bhat,7028862699
— rakeshbhat2011 (@rakeshbhat2011) September 30, 2019

Rakesh's post was in response to Union Finance Minister Nirmala Sitharaman who referring to the PMC Bank scam issued an appeal to the depositors.

"On the Punjab and Maharashtra Cooperative Bank matter, a press release through the @PIB_India. Depositors can access the website http://www.pmcbank.com for any grievance redressal and call on toll free number 1800223993 for enquiries", Sitharaman said.

PMC Bank Scam

The PMC Bank scam came to light after the Reserve Bank of India (RBI) imposed restrictions on withdrawal from PMC Bank citing "major financial irregularities" and other other red flags. It initially fixed the withdrawal limit per customer at Rs. 1,000, which was later raised to Rs. 10,000.

It was later found that the PMC Bank had sanctioned a loan of more than 4,300 cr rupees to Housing Development and Infrastructure Ltd (HDIL) deliberately violating banking norms and showed false profits to mislead the authorities, although the bank was actually incurring losses.

FIR Against HDIL, PMC Bank Officials

The Economic Offences Wing (EoW) of Mumbai Police has registered an FIR against senior officials of Housing Development and Infrastructure Ltd (HDIL) and Punjab and Maharashtra Cooperative (PMC) Bank over allegedly causing losses to the tune of Rs 4,355.43 crore to the bank.

The FIR mentioned PMC Bank's now-suspended Managing Director Joy Thomas, Chairman Waryam Singh and other executives. It also mentions involvement of Sarang Wadhawan, the Vice Chairman and Managing Director of HDIL.

The EOW has also appointed a special team to carry out investigations into the case.

Meanwhile, while responding to Rakesh's tweet Nirmala Sitharaman appealed him to refrain from writing such "extreme things" which further escalate the crisis.

"I appeal to you not to mention/speak/write of such extreme things. Multi state cooperative institutions do not come under Ministry of Finance, even if they are called banks. @RBI is their regulator and they are taking action", Sitharaman wrote.

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