PMC Bank seized assets worth ‘more than deposits’

Tribune News Service

Mumbai, June 22

Deposit-holders at the troubled Punjab and Mumbai Co-operative Bank say assets seized from the bank’s directors and its biggest borrowers, the Wadhwans of the bankrupt HDIL, are worth double their funds held by the financial institution.

“The Enforcement Directorate and the Economic Offences Wing (of the Mumbai Police) have seized assets and properties worth Rs 10,000 crore from HDIL/Wadhwans and bank directors Waryam Singh and Joy Thomas,” said Manjeet Singh Sabharwal of the PMC Depositors Action Team.

Sabharwal said depositors had put several options before the government and the RBI to help them recover their money from the fraud-hit bank. “One option is a bailout package of minimum Rs 5,000 crore from either the government or the RBI so that PMC Bank can resume business operations,” he said.

The depositors have also suggested putting up for auction the seized assets for raising capital to revive the bank.

PMC Bank depositors body have compiled a list of seized properties in Mumbai and other parts of Maharashtra, UP and Hyderabad.