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PMC Bank administrator to sell 2 aircrafts, 1 yacht

Shritama Bose
Last week, a metropolitan court in Mumbai allowed the administrator for PMC Bank to sell the assets.

The Reserve Bank of India (RBI)-appointed administrator for Punjab & Maharashtra Co-operative (PMC) Bank on Monday invited bids from advisers to carry out the sale of two aircraft and a yacht.

The assets on sale belong to Housing Development Infrastructure (HDIL) Group promoters Rakesh and Sarang Wadhawan, the prime accused in the Rs 4,355-crore scam.

"For the purpose, the administrator intends to appoint national/international adviser cum process coordinator that shall be a reputed firm having prior experience of providing such services to sell such assets," administrator JB Bhoria said in a public notice.

Last week, a metropolitan court in Mumbai allowed the administrator for PMC Bank to sell the assets.

Meanwhile, finance minister Nirmala Sitharaman on Monday said in Parliament that nearly 78% of the depositors with accounts in PMC Bank have been allowed to withdraw their entire deposits. There is currently a ceiling of `50,000 on withdrawal by depositors.

PMC Bank's exposure to the HDIL Group was in excess of RBI's prescribed limits for single group exposure, Joy Thomas, suspended chief executive of the bank had said on September 27.

Non-reporting of these loans over a period of about seven years and eventual defaults on them precipitated the ongoing crisis at PMC Bank.

Earlier this year, HDIL was dragged to the insolvency tribunal by Bank of India to recover its loans. HDIL had thereafter arrived at a settlement with BoI to stay out of the National Company Law Tribunal.