Rs 4 crore in bank, PMC depositor forced to take loan for COVID-19

PMC Bank depositors protest outside a branch in Bandra. Pic/Sayyed Sameer Abedi

As if having his entire family's money, Rs 4 cr stuck in the scam -hit PMC Bank was not trouble enough, Malad-based businessman, Kirit Shah, caught COVID-19. After spending 15 days in hospital for treatment in July, he was given a bill of Rs 7 lakh, and had to borrow money from relatives to pay it, as the bank only gave him R4 lakh. Despite the crores in the bank, Shah is struggling to pay for medicines.'

Shah was given a bill for R7 lakh by the hospital where he was treated. But the PMC Bank only allowed him to withdraw R4 lakh. So the rest of the money he took on loan from relatives. In all the five-member Shah family has R4 crore in the PMC Bank's Oshiwara branch.

Kirit Shah is also finding it difficult to pay instalments of a flat that he bought

Speaking to mid-day, Shah said, "Due to the lockdown my business stopped. After recovery from COVID-19, every month I have spent R5,000-R6,000 on medicines. I don't have any income source. Even for purchasing medicine I have taken a loan from my relatives. I had a flat which I sold and kept the money in PMC Bank. I had purchased another flat and the installment is pending. In December I have to pay its remaining dues. Currently I stay in a rented flat and it is difficult for me to pay even its rent."

An officer from the Oshiwara branch of PMC Bank said, "According to the Reserve Bank of India, we can only give R5 lakh for health reasons and other important requirements. If the account holder earlier took R1 lakh, then we only give him/her R4 lakh."

The scam was revealed when the RBI found that the PMC Bank had allegedly created fictitious accounts to hide over R4,355 crore loans extended to the almost-bankrupt HDIL. Pic/Ashish Raje

mid-day tried to contact J B Bhoria, the administrator of PMC Bank appointed by RBI, but he was unavailable for comment.

Also Read: Unable to repay loan, farmer consumes poison but cannot get admitted to govt hospital

Rs 7 lakh
The hospital bill Kirit Shah had to pay

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