PMC Bank Crisis: RBI plans to auction HDIL directors' properties

The properties include a yacht, two aircraft, 14 vehicles and are not mortgaged with the bank. But since Wadhwans had already given their consent to sell off these properties to pay the bank, EOW is looking for auctioning these properties

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In a minor relief for the Punjab and Maharashtra Cooperative (PMC) Bank depositors, the Reserve Bank of India (RBI)-appointed experts have started valuating the Housing development infrastructure Limited (HDIL) properties, which were mortgaged with the Bank so that they can be auctioned. Once the properties are auctioned the money will be infused in the bank to pay the depositors.

Last month, RBI had put restrictions on the now-defunct bank, blocking the saving of thousands of depositors after PMC Bank came under scanner for extending questionable loans to HDIL. The alleged scam came to light after the RBI found out that the HDIL had allegedly created more than 21,000 fictitious accounts to hide over ₹4,300 crore of loans extended to almost-bankrupt HDIL.

A senior Mumbai police officer who is close to the developments stated that two days ago the PMC Bank’s RBI administrator had initiated the valuation process by appointing a valuer. After the valuation is complete, the base price of the properties will be decided and advertisement for their auctioning will be published in newspapers.

According to the sources, the Mumbai Police’s Economic Offences Wing (EOW) has requested RBI administrator to initiate auctioning of valued properties in a phased manner at the earliest and not to waste time waiting to auction all the properties in bulk.

The RBI administrator, on Wednesday, had written to EOW seeking a no-objection certificate for auctioning the mortgaged properties. The worth of the attached HDIL properties is estimated to be worth nearly ₹4,000 crores.

The properties include a yacht, two aircraft, 14 vehicles and are not mortgaged with the bank. But since Wadhwans had already given their consent to sell off these properties to pay the bank, EOW is looking for auctioning these properties.

A forensic audit report has been presented before the EOW and the final report for the same will be ready in a fortnight.

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