PMC Bank Account Holders File PIL Before Bombay High Court Seeking Relief From Reserve Bank Of India Curbs

A Mumbai-based Non-Governmental Organization (NGO), along with nine account holders of the PMC Bank have filed a PIL before the Bombay High Court seeking relief from curbs on withdrawals of not more than Rs 10,000, announced by the Reserve Bank of India (RBI).

Their plea has stated that the RBI’s decision under Section 35 (A) of the Banking Regulation Act, 1949 taken under the guise of ‘public interest’ deprives depositors their rights to have access to their own property, which by itself is contradictory to the provisions of the Act.

The plea has contended that the Banking Regulation Act is very clear in terms of public interest and it cannot be interpreted as to penalize the public in general.

The petitioners have stated that the RBI directive curbing withdrawals violates Articles 14, 19 and 21 of Constitution of India.

The plea has stated that reasons for imposing the RBI's restrictive measures are ambiguous and that they do not provide detailed information on the nature of the irregularities committed by PMC Bank.

The petitioners have stated that the public has a right to know the facts as well as the genuineness and merits of alleged irregularities in the bank.

Their plea has also sought directions from the court to constitute an RBI committee of experts to probe the misappropriation of public funds.

The petition has also urged the court to direct the RBI to give detailed reasons for their action against account holders of PMC Bank and to submit a report with regard to an ongoing financial audit of the books of account of the bank.