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Mumbai, Shiv Sena Rajya Sabha member and spokesperson Sanjay Raut's <keyword id="10541297" type="UNKNOWN" weightage="20" keywordseo="wife-varsha-raut">wife Varsha Raut</keyword> on Monday deposed before the Enforcement Directorate (ED) in connection with its <keyword id="481005" type="PERSON" weightage="20" keywordseo="money-laundering-probe">money laundering probe</keyword> into the <keyword id="8178546" type="UNKNOWN" weightage="20" keywordseo="PMC-Bank-fraud-case">PMC bank fraud case</keyword>. According to ED sources, she arrived at the financial probe agency office here in the afternoon. The source said that she will questioned about the Rs 55 lakh interest free loan transferred to her in 2010 and 2011 by her business partner Madhuri Raut, the wife of Pravin Raut, who has been accused of money laundering in the HDIL case. The source further said that she will also be questioned about her partnership with Madhuri Raut in Avani Construction and how did she receive Rs 12 lakh from the entity (as overdrawn capital converted to loan) on a contribution of Rs 5,625. According to ED officials, the loan amount of Rs 12 lakh to Varsha Raut is still outstanding. This is the first time that Varsha Raut has appeared before the ED after being summoned twice by the agency in the case. The ED has registered a case of money laundering on the basis of FIR registered by Mumbai Police's Economic Offences Wing against <keyword id="638887" type="DOMAIN" weightage="20" keywordseo="Housing-Development-Infrastructure-Ltd">Housing Development Infrastructure Ltd</keyword> (HDIL), its promoter Rakesh Kumar Wadhawan, Sarang Wadhawan, Waryam Singh, the then Chairman and Managing Director of the bank <keyword id="829201" type="PERSON" weightage="20" keywordseo="Joy-Thomas">Joy Thomas</keyword> and others for causing loss to the tune of Rs 4,355 crore to PMC Bank and corresponding gain to themselves. The ED has attached properties worth Rs 72 crore on January 1 of Pravin Raut under the Prevention of Money Laundering Act (PMLA) as during investigation, it was revealed that Rs 95 crore has been allegedly siphoned off through HDIL by him in active conspiracy and connivance with various persons. The ED officials on January 1 had said that the source of the funds was illegal availed loans or advances etc by HDIL from the PMC Bank. There was no document or agreement in support of these payments made to Pravin Raut. The official further said that as per the ledger of HDIL, the funds were given to him for acquiring land in Palghar area. The ED official had said it was also found that Raut paid an amount of Rs 1.6 crore to his wife from the proceeds of crime. Madhuri Raut had transferred Rs 55 lakh out of Rs 1.6 crore to Varsha in 2010 and 2011. The amount was further utilised for purchase of a flat in Mumbai's Dadar East, the official said. The notice to Varsha had sparked a huge political row in the state with the ruling Maha Vikas Aghadi allies Shiv Sena-Nationalist Congress Party-Congress and opposition <keyword id="58687" type="COMPANY" weightage="20" keywordseo="Bharatiya-Janata-Party">Bharatiya Janata Party</keyword> trading verbal blows. Sanjay Raut had also accused the BJP at Centre of misusing the central probe agencies like the ED, the CBI, the IT to harass and silence political opponents. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/reliance-says-it-has-absolutely-no-plan-to-enter-contract-farming-urges-government-to-stop-vandalism-amidst-ongoing-farmers-protests/articleshow/80091733.cms" data-type="tilCustomLink">Reliance says it has 'absolutely no plan' to enter contract farming — urges government to stop vandalism amidst ongoing farmers' protests</a> <a href="https://www.businessinsider.in/stock-market/news/big-money-chasing-bitcoin-takes-the-cryptocurrency-to-a-new-record-high-of-34000/articleshow/80090730.cms" data-type="tilCustomLink">Big money chasing Bitcoin takes the cryptocurrency to a new record high of $34,000</a>

PMC Bank scam: Sanjay Raut's wife Varsha deposes before ED in connection with the money laundering probe

<ul><li>Scam-hit PMC Bank's depositors from Delhi staged a protest outside the Reserve <keyword id="6355303" type="DOMAIN" weightage="20" keywordseo="bank-of-india">bank of India</keyword> to demand that their money be returned.</li><li>The bank has been put under restrictions by the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> after an alleged fraud came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors.</li><li>Subsequently, it was raised to Rs 10,000 and to Rs 50,000 earlier this week by the RBI.</li></ul>Scam-hit PMC Bank's depositors from Delhi staged a protest outside the Reserve bank of India here on Monday to demand that their money be returned. They threatened to go on a hunger strike after March 2 if their money is not returned and their concerns not addressed. Hemant Kumar, who had come from Malviya Nagar, said, "These people will not understand till we carry out a Shaheen Bagh-like protest outside the RBI. If they do not listen to us, we will block the road outside the RBI." Tek Chand, who has an account with Tilak Nagar branch, said, "My wife is a kidney patient and she has to undergo dialysis thrice every month. What am I supposed to do? I have been left helpless due to the situation. it is our hard earned money." Another depositor, <keyword id="8827022" type="PERSON" weightage="20" keywordseo="tajinder-pal-singh-gujral">Tajinder Pal Singh Gujral</keyword>, a resident of Janakpuri, had deposited Rs 2.5 crore in the bank after he sold his house, a day before the bank shut down in September. "I had sold off my house and the payment from that deal had come into my account with the PMC bank. I had booked another house and given Rs 5 lakh as down payment and was supposed to pay for it from the PMC account. But, now, those Rs 5 lakh are also gone and this money is also stuck. I cannot buy a house or do anything for my business," he said. The bank has been put under restrictions by the RBI after an alleged fraud came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors. Subsequently, it was raised to Rs 10,000 and to Rs 50,000 earlier this week by the RBI. Punjab &amp; <keyword id="689622" type="COMPANY" weightage="20" keywordseo="Maharashtra-Cooperative-Bank">Maharashtra Cooperative Bank</keyword>, which is among the top-10 urban cooperative banks, was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans. The bank, over a long period of time, had given over Rs 6,500 crore in loans to HDIL, which is 73 per cent of its total advances, and which has turned sour with a shift in the fortunes of the now bankrupt company. Its total loans stand at Rs 8,880 crore and the deposits at over Rs 11,610 crore. There have been massive protests across city from the depositors following the RBI action. SLB DP HRS

Scam-hit PMC bank depositors are inspired by Shaheen Bhag protests

<ul><li><keyword id="1907998" type="ORGANIZATION" weightage="20" keywordseo="PMC-Bank">PMC Bank</keyword> is known to have lent to HDIL using over 20,000 bogus accounts. </li><li><keyword id="178285" type="COMPANY" weightage="20" keywordseo="Laxmi-Vilas-Bank">Laxmi Vilas Bank</keyword>’s directors are being investigated in a case of missing FDs. </li><li><keyword id="127124" type="CITY" weightage="20" keywordseo="DHFL">DHFL</keyword>’s senior citizen investors are left in the lurch as it is being investigated by police for underworld links. </li><li>Religare Finvest alleged that the former promoters— the SIngh brothers — have stripped the company of its assets. </li></ul>Those who choose not to remember 2019 as a year of slowdown can remember it as a year of banking failures. PMC Bank, a large <keyword id="174493" type="COMPANY" weightage="20" keywordseo="Commercial-Bank">commercial bank</keyword> with 1.6 million depositors fell this year, almost two decades after a co-operative bank called Krushi Bank went defunct. History repeated itself with heart aches and heart attacks to depositors. There is more to worry about as other banks might be in the throes of trouble as well. The banking regulator the Reserve Bank of India (RBI) admitted that ₹71,500 crore worth of bank <a href="https://economictimes.indiatimes.com/news/economy/finance/bank-fraud-touches-rs-71543-crore-in-2018-19-rbi-annual-report/articleshow/70895326.cms">frauds have been </a>detected in 2018-19. To remedy this situation, yesterday the Central Bureau of Investigation (CBI) started conducting raids across 11 states in the country yesterday, in hopes of recovering what banks had lost. Here are the troubles that rocked the banking sector this year.

Slowdown or not, these India’s banks and shadow banks are in trouble

New Delhi, May 19 () The Delhi High Court has directed the Centre and Ministry of Finance to disclose if it intends to infuse funds to render support to scam-hit Punjab and Maharashtra Cooperative (PMC) Bank. Justice Rajiv Shakdher, who conducted the hearing through video conferencing, asked the administrator of the bank to file a status report which shall indicate whether or not the sale of assets of the promoter-directors of HDIL has taken place. In case the sale of assets has taken place, the status report will also indicate the amount garnered and the assets sold, the high court said. Two directors -- Rakesh Wadhawan and his son Sarang Wadhawan -- of Housing Development and Infrastructure Ltd (HDIL) were earlier arrested in the PMC bank scam case. In September last year, the Reserve Bank of India (RBI) had imposed restrictions on PMC Bank and also superseded the board and management of the bank and appointed an ex-RBI official as the administrator. An argument was raised by the petitioner that, recently, the Centre had infused funds in a scam-hit private bank, Yes Bank. The high court was hearing a plea by Sandeep Bhalla seeking direction to the RBI to issue a statement on timelines and safety of deposits held by the depositors with the PMC Bank and to ensure payments are made to depositors in full along with interest. The plea also sought direction to the RBI to allow the petitioners and depositors particularly senior citizens to withdraw amounts up to the interest on their deposits to enable them to make their living. The plea was filed in a pending petition concerning the fate of the deposits made with the PMC Bank. The high court, in its order, said "The Union of India, Ministry of Finance, will file an affidavit indicating as to whether it intends infusing funds to render financial support to respondent no. 2 (PMC Bank). This direction has been issued in the context of an argument raised by petitioner no.1 that, recently, respondent no.3 (Centre) had infused funds in a private bank, that is, Yes Bank." The high court also said that the administrator's status report will also give the details of the HCIL promotors' assets which have not been sold. "The market value and the realisable value will be set out in the status report. Status report will indicate as to the steps taken for the sale of these assets," it said, adding that the report be filed within four weeks and listed the matter for further hearing on June 25. SKV HMP RKS RKS RKS

HC asks Centre if it intends to infuse funds to support scam-hit PMC Bank

(Eds: Adding details) New Delhi, Mar 3 () A bill to provide more powers to the RBI for regulating cooperative banks was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday.The Banking Regulation (Amendment) Bill, 2020, which comes in the backdrop of PMC Bank scam, seeks to strengthen cooperative banks by increasing professionalism, enabling access to capital, improving governance and ensuring sound banking through the RBI.Introducing the bill, Sitharaman said it is the "need of the hour" to avoid a PMC Bank-like crisis in the future.Noting that the happenings at the PMC Bank had "unfortunately" put a lot of small depositors in difficulty, she said there were demands that the government should do something about it.The Bill was introduced in the Lok Sabha amid the din, with Sitharaman saying that if the opposition wants to deny the small depositors their rights then "it is a shame". It could not be cleared because of the ongoing ruckus in the House over the issue of violence in Delhi.The proposed law seeks to enforce banking regulation guidelines of the RBI in cooperative banks, while administrative issues will still be guided by the Registrar of Cooperative.It also proposed to bring cooperative banks on par with developments in the banking sector through better management and proper regulation of cooperative banks with a view to ensure that affairs of cooperative banks are conducted in a manner that protects the interest of depositors, it said."Keeping in view developments in the banking sector and regulation thereof overtime, it has become necessary to strengthen provisions of the said Act as applicable to cooperative banks," said the Statement of Objects and Reasons of the Bill.In her Budget speech, Sitharaman had said that to strengthen cooperative banks, amendments would be brought in the Banking Regulation Act for increasing professionalism, enabling access to capital and improving governance and oversight for sound banking through the RBI.The decision assumes significance in the wake of a scam in the Punjab and Maharashtra Cooperative (PMC) Bank affecting lakhs of customers who have been facing difficulty in withdrawing their money due to restrictions imposed by the RBI.The PMC Bank was found to have given over Rs 6,700 crore loan to a single realty company HDIL through alleged fraudulent means and also hid the stress from the RBI by creating separate books of accounts.There are 1,540 cooperative banks with depositor base of 8.60 crore having total savings of about Rs 5 lakh crore. JD CSBAL

Bill to give more powers to RBI to regulate cooperative banks introduced in LS

<ul><li>Nirmala Sitharaman increased the guarantee that the government offers depositors as banks fail – from ₹1 lakh to ₹5 lakh. </li><li>This is the first time in 59 years that the government moved to increase <keyword id="1127487" type="ORGANIZATION" weightage="20" keywordseo="Deposit-Insurance">deposit insurance</keyword>, after 1961. </li><li>The Deposit Insurance and Credit Guarantee Corporation received<a href="https://www.businessinsider.in/business/news/deposit-insurance-corporation-sees-rs-14100-cr-claims-amid-pmc-crisis/articleshow/73016977.cms"> total claims of</a> ₹14,100 crore. </li></ul>After <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/the-collapse-of-pmc-exposes-the-fault-lines-in-the-financial-system-/articleshow/71402139.cms">the PMC bank crisis </a>resulted in deaths and suicides of depositors, a lot of customers have been on the edge. The Finance Minister Nirmala Sitharaman today increased the guarantee that the government offers depositors as banks fail – from ₹1 lakh to ₹5 lakh. “A robust mechanism is in place to monitor the health of all banks and the money of depositors are safe,” Sitharaman said in her Budget speech. This is the first time in 59 years that the government moved to increase deposit insurance, after 1961. The five-fold increase is much higher than the market expectations of doubling deposit insurance offered by the government. A deposit insurance scheme is the government’s way of compensating small depositors. The rest of the money will have to be forfeited by the depositors in case a bank shutters down like in the case of PMC Bank, leaving thousands of customers in dire straits. "Bank depositors get a shot in the arm with the upward revision in deposit insurance cover. While this could mean some expenditure for the Bank, this would certainly give comfort to retail savers," said R K Gurumurthy, head of treasury at Lakhsmi Vilas Bank. Last month, the Deposit Insurance and Credit Guarantee Corporation received<a href="https://www.businessinsider.in/business/news/deposit-insurance-corporation-sees-rs-14100-cr-claims-amid-pmc-crisis/articleshow/73016977.cms"> total claims of</a> ₹14,100 crore after the PMC bank scam. Bank frauds had remained dormant for decades: RBI After the scam, millions of customers across all co-operative banks have been worried as panic spread. This was compounded by the fact that the Reserve Bank also sounded an alarm in its financial stability report on the number<a href="https://www.businessinsider.in/policy/economy/news/rbi-financial-stability-report-finds-billions-lost-in-bank-fraud-this-year/articleshow/72998905.cms"> of bank frauds</a>. In the first six months of FY20, as many as ₹2.6 lakh crore worth bank frauds were unearthed by the banking regulator. The report also said that some of these schemes have remained hidden from 2000-01 which was the time that the first dotcom bust occurred. All this and the fall of large financial institutions like IL&amp;FS and DHFL, exposed the many loopholes in the banking system. However, the government chose to expand its own guarantee of these troubled banks instead of taking penal action on the management of these institutions.

India Budget 2020: Bank scam victims are assured of ₹5 lakh instead of ₹1 lakh

<ul><li>Former <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) governor <keyword id="6358908" type="DEFINITION" weightage="20" keywordseo="raghuram-rajan">Raghuram Rajan</keyword> and former deputy governor <keyword id="6374379" type="PERSON" weightage="20" keywordseo="viral-acharya">Viral Acharya</keyword> believe that the move to let large corporations own <keyword id="6368751" type="UNKNOWN" weightage="20" keywordseo="banks">banks</keyword> is a ‘bad idea.’</li><li>Not only would this further consolidate financial power in the hands of the few, but it would essentially leave these companies open to the temptation of unlimited funding.</li><li>Analysts at Macquarie and Edelweiss Research have also warned that allowing corporates and NBCFs to bid for banking licenses would not be a wise choice.</li></ul>India’s banking sector has been lauded for its strength in the past, but that was before the <keyword id="6906241" type="UNKNOWN" weightage="20" keywordseo="ILFS-crisis">IL&amp;FS crisis</keyword> and the <a href="https://www.businessinsider.in/finance/banks/news/lakshmi-vilas-bank-is-the-fifth-financial-firm-after-ilfs-dhfl-yes-bank-and-pmc-bank-to-collapse-in-india/slidelist/79286096.cms">four other banks that fell thereafter</a>.Letting large corporations become promoters of banks would only rip down another safeguard of India’s banking sector. According to former RBI governor Raghuram Rajan and former deputy governor Viral Acharya, going down this path is a ‘<a href="https://www.linkedin.com/feed/update/urn:li:activity:6736517958199242753/">bad idea</a>’. If industrial houses have in-house banks, the level of governance and lack of transparency will deteriorate further. Their direct access into the financial veins of the system would only increase the concentration of economic power in the hands of the few at the top rather than be a force for equality. The second risk that lays ahead is that the more interdependent and connected the banking system — and the powers behind it — become, the greater the probability of banks becoming ‘too big to fail’, according to Rajan. That may be good for the customer in the short run, but in the long run it would leave India’s central bank with no option to bailout banks every time they miss a step. Global research company <a href="https://www.businessinsider.in/finance/banks/news/macquarie-warns-that-rbis-decision-on-new-bank-licenses-could-be-controversial-given-the-number-of-bank-failures-in-india/articleshow/79364026.cms">Macquarie</a> has also warned that allowing non-banking financial companies (NBFCs) and corporate houses to bid for a banking license would be very controversial in light of bank failures increasing in India. Why having on-tap funding is a bad idea One of the primary lessons that India has learned in the last decade is that if a corporation has access to funding without any checks in place, it tends to go the wrong way. One example would be of <a href="https://www.businessinsider.in/business/news/nirav-modi-punjab-national-bank-scandal-rolls-royce-and-the-rise-of-a-mumbai-auction-house/articleshow/74129339.cms">Nirav Modi</a>, once lauded as India’s top international jewelry designer but now dubbed a fugitive on the run. He’s on the hook for scamming the Punjab National Bank out of ₹11,356.84 crore by getting letters of undertaking without putting up any collateral. “Regulars can succumb to either political pressure or the urgency of the moment,” noted Rajan. In the Punjab and Maharashtra Cooperative (PMC) Bank scam, which is yet to be resolved, the bank’s chairman S Waryan Singh <a href="https://www.businessinsider.in/finance/banks/news/lakshmi-vilas-bank-is-the-fifth-financial-firm-after-ilfs-dhfl-yes-bank-and-pmc-bank-to-collapse-in-india/slidelist/79286096.cms">allegedly</a> created fake accounts to hide taking out loans for the almost-bankrupt HDIL in which he held 1.91% stake. Even in the YES Bank crisis, the bank’s founder and promoter <a href="https://www.businessinsider.in/finance/banks/news/lakshmi-vilas-bank-is-the-fifth-financial-firm-after-ilfs-dhfl-yes-bank-and-pmc-bank-to-collapse-in-india/slidelist/79286096.cms">Rana Kapoor took kickbacks</a> to give loans without conducting due diligence. These are just more examples of how having access to unfettered financing can be too much of a temptation for some, and there’s no test to determine the worthy from the unworthy. Not yet, anyway. “The history of such connected lending is invariably disastrous — how can the bank make good loans when it is owned by the borrower?” remarked Rajan. Deepening the division between the haves and the have nots The divide between the rich and the poor is already vast in India. The top 10% of the population accounts for 77% of the total national wealth, according to <a href="https://www.oxfam.org/en/press-releases/worlds-billionaires-have-more-wealth-46-billion-people">Oxfam’s Billionaires Report</a>. Even though there is no denying that banks will require capital infusion in the future, and even if banking licenses are allotted fairly — it will still be a biased process, according to Rajan. Those large business houses that already have the initial capital to put up will be at an advantage against others. “While rules can be black and white, fit and proper criteria and due diligence will remain a grey area, in our view,” noted Macquarie’s report. The bigger the bank is, the more interconnected, there will be more reason for the RBI to run to its rescue in order to safeguard the interests of the bank’s depositors. “The bailout costs to the exchequer could be significantly more when it comes to bank licenses to industrial houses, which will start out big,” said Rajan. The RBI has been down this road before with Times Bank and the Bank of Rajasthan. In both cases, corporate houses were allowed to run banks before ultimately collapsing. This time around, Larsen &amp; Toubro (L&amp;T) is likely to be first in line if the recommendation is approved. It has, in the past, requested a banking license and subsequently been denied. Other expected candidates include Bajaj, the Birlas and the Tatas, according to Edelweiss Securities. But even its optimism, Edelweiss concludes, “There will be blood.” SEE ALSO: <a href="https://www.businessinsider.in/science/health/news/oxford-and-astrazeneca-covid-19-vaccine-is-70-effective-and-india-may-authorise-emergency-use-after-uk-nod/articleshow/79365393.cms">Oxford and AstraZeneca COVID-19 vaccine is 70% effective — India may authorise emergency use after UK nod</a> <a href="https://www.businessinsider.in/stock-market/news/indusind-bank-idfc-first-bank-and-jk-bank-stocks-are-soaring-after-rbi-recommendation/articleshow/79363915.cms">IndusInd Bank surges over 4% after RBI committee proposes to increase the cap on promoter stake in private sector banks</a> <a href="https://www.businessinsider.in/tech/apps/news/how-to-earn-money-at-home-from-googles-task-mate/articleshow/79362215.cms">Google is testing ‘Task Mate’ in India, which lets users earn money for doing tasks on their smartphones</a>

You Searched For "pmc bank scam" and got 7 results

PMC Bank scam: Sanjay Raut's wife Varsha deposes before ED in connection with the money laundering probe

IANS

Scam-hit PMC bank depositors are inspired by Shaheen Bhag protests

PTI

Slowdown or not, these India’s banks and shadow banks are in trouble

Katya Naidu

HC asks Centre if it intends to infuse funds to support scam-hit PMC Bank

PTI

Bill to give more powers to RBI to regulate cooperative banks introduced in LS

PTI

India Budget 2020: Bank scam victims are assured of ₹5 lakh instead of ₹1 lakh

Katya Naidu

Here's why former RBI governor Rajan and former deputy Acharya believe the plan to allow corporations to own banks is a 'bad idea'

Prabhjote Gill

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