Top PMC officials hid HDIL accounts from system: RBI to Bombay HC
In an affidavit, the RBI also said of the 1,800 employees of Punjab & Maharashtra Cooperative (PMC) Bank, only about 25 of them could access the loans accounts of the now bankrupt real estate developer HDIL and its group entities.The regulator said these few employees used an access code to hide and restrict the visibility of these dummy accounts of the realty developer.
The urban cooperative bank, which was placed under an RBI administrator on September 23, has an exposure to the bankrupt HDIL of over Rs 6,500 crore, which is 73 per cent of its entire assets of Rs 8,880 crore.The RBI further said the undisclosed loan accounts to the HDIL group were sanctioned and renewed with approval of the bank's now-suspended managing director Joy Thomas, who is behind the bars now along with the bank chairman Wayram Singh. "These loan sanctions are not recorded in the minutes of loans committee, recovery committee and so on," the affidavit said.
"PMC Bank submitted fraudulently manipulated data to the RBI for sample checks and the sample of accounts picked for inspection did not contain the undisclosed HDIL related accounts," it said.
The RBI also informed the court that depositors of the bank can approach the RBI-appointed administrator for withdrawal up to Rs 1 lakh in case of medical emergencies.The withdrawal limit for account holders was initially Rs 1,000 per each customer for six months, which was later raised to Rs 10,000 and is now presently at Rs 50,000. SP HV AP BEN ZMN
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
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