The Supreme Court has dismissed the bail applications of two former directors of Punjab and Maharashtra co-operative bank Daljit Singh Bal and Gurnam Singh Hothi, in the PMC bank scam.
The Bombay High Court had earlier withdrawn interim protection to the two former directors.
In the past, the police had registered a First Information Report (FIR) against the top officials of the Punjab and Maharashtra Co-operative (PMC) bank and the promoters of the HDIL. According to the prosecution, the bank carried on with giving loans to the debt-ridden HDIL from 2008 to 2019 in spite of the preceding loans not being reimbursed. This caused a loss of approximately ₹4,355 crores.
Moreover, several sections of the Indian Penal Code (IPC) such as criminal breach of trust, cheating, and forgery have been cited against the accused. Besides HDIL promoters Sarang and Rakesh Wadhawan, the former Managing Director Joy Thomas and ex-Chairman Waryam Singh were arrested and sent to police custody. Out of 44 accounts, a total of 10 were linked to HDIL.
These included the personal bank accounts of the accused. In another letdown for the depositors, the Reserve Bank of India in June extended the moratorium on the PMC Bank till December 22, 2020. Additionally, the RBI raised the withdrawal limit to ₹1 lakh.
On September 4, the account holders organised another protest outside the RBI bank at BKC.
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