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    HomeNewsBusinessPMC Bank crisis | RBI asks Mumbai Police to seek court nod to start liquidation: Report

    PMC Bank crisis | RBI asks Mumbai Police to seek court nod to start liquidation: Report

    The administrator appointed by the central bank will receive the asset hand over to further the liquidation process.

    Moneycontrol News
    October 31, 2019 / 13:07 IST

    The Economic Offences Wing of the Mumbai Police will soon seek court approval in relation to handing over of assets in the Punjab & Maharashtra Cooperative (PMC) Bank case, reports The Economic Times.


    After that, the administrator appointed by the Reserve Bank of India will receive the assets to further the liquidation process.


    The article quotes EOW chief Rajvardhan Sinha as saying that an in-principle no-objection certificate has been issued to detach the properties after the RBI communique.


    The Wadhwans have already given their consent for the auction. The report suggests that the police is expected to approach the court by the end of this week.


    The liquidation will be carried out under provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (Sarfaesi) Act, 2002 easing depositors' distress.


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    While consent has been received for 18 attached properties, it will be auctioned at 'fair market value' without any legal faceoff. While total deposit is around Rs.11,000 crore, Rs.3,500 crore is the value of the attached properties.


    Several customers of the Punjab and Maharashtra Cooperative (PMC) Bankhad  been protesting outside the Reserve Bank of India (RBI) office with the last protest on October 30.

    The bank crisis stems from loans to realty player Housing Development Infrastructure (HDIL), which were allegedly hidden from the regulator's scrutiny, turning into a non-performing asset.
    Moneycontrol News
    first published: Oct 31, 2019 11:21 am

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