Tales of PMC Bank Crisis Ft BJP Leaders, RBI Employees

It has also come to light that RBI employees too had fixed deposits with the co-operative lender.

Updated
Business
2 min read
Police personnel stand guard outside PMC Bank in Mumbai
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Within two days of crisis hitting the Punjab and Maharashtra Co-operative (PMC) Bank, links have now emerged between the beleaguered lender and the Bharatiya Janata Party (BJP).

A Mumbai Mirror report suggests that one of the co-directors of the bank is the son of a four-time MLA of the saffron party.

Meanwhile on Thursday, 26 September, the Reserve Bank of India (RBI) relaxed the withdrawal limit for PMC Bank’s customers to Rs 10,000 per account, from the previous limit of Rs 1,000.

In another aspect involving the the central bank and PMC Bank, it has now come to light that even RBI employees had fixed deposits with the co-operative lender.

Here is a lowdown on some of the unraveling plots in the aftermath of the PMC Bank fiasco:

The BJP Link

WHAT’S THE BJP LINK?

The Mumbai Mirror report identifies Rajneet Singh, one of the PMC Bank co-directors, as the son of Sardar Tara Singh, BJP's four-time MLA from Mulund.

According to the report, Rajneet, who is also a BJP member, is seeking a party ticket from Mulund to replace his father.

WHAT IS RAJNEET’S RESPONSE?

Speaking to the Mumbai Mirror, Rajneet claimed that this is his third term as a co-director in 13 years and that he is not involved "day-to-day activities" of the bank. His father, Sardar Tara Singh, also echoed his stand, the report says.

Complaint Filed Against PMC Bank

Former BJP MP Kirit Somaiya and several account holders of the bank on Thursday, filed police complaints against top officials of the bank and real estate firm HDIL, for allegedly looting Rs 3,000 crore of the depositors, news agency PTI reported quoting police.

Speaking to the reporters, Somaiya alleged that there was conspiracy between the PMC Bank management and HDIL's owner to loot the depositors, and sought a proper investigation in the matter.

He also said that the RBI's administrator should file a criminal complaint against officials concerned of the HDIL and PMC Bank, according to PTI.

Meanwhile, the Mumbai Mirror report also mentions Somaiya, suggesting that Rajneet, who was seeking a ticket for the 2017 BMC election, was pipped by Neil Somaiya, Kirit’s son.

RBI Employees Too in PMC Bank Mess

A separate report by the Hindu BusinessLine has revealed that the Reserve Bank of India Officers’ Co-op Credit Society Ltd has a fixed deposit worth Rs 105 crore with PMC Bank.

The report which quotes the society's balance sheet for the financial year 2018-19 suggests that RBI officers are members of the society.

The report further says that the Reserve Bank of India Officers’ Co-op Credit Society Ltd, also has fixed deposits with PMC Bank.

(With inputs from Mumbai Mirror, Hindu BusinessLine and PTI)

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