HC restrains sale of benami property in Rs600 crore Pen Urban bank scam
MDT/PTI 02 August 2012

The petitioners have alleged Rs600 crore had been siphoned off by directors of Pen Urban Cooperative Bank and this money be recovered from them

 
Mumbai: Hearing a petition alleging siphoning of Rs600 crore by board of directors in Pen Urban Cooperative Bank in Raigad district of Maharashtra, the Bombay High Court has restrained owners of 39 properties held in benami names from selling or creating third party rights, reports PTI.
 
Justice DD Sinha and Justice Vijaya Kapse-Tahilramani also asked Reserve Bank of India (RBI) to make its stand clear on 26th September, the next date of hearing.
 
The 39 benami properties valued at Rs60 crore have already been attached. However, the court ordered those persons holding such properties as benami on behalf of the owners not to dispose them or sell them or create third party rights until the case is finally disposed of.
 
RBI had suggested appointment of a liquidator but the petitioners Naren Jadhav and others have opposed the move saying the bank should be revived instead so that the interests of the investors are protected.
 
It was argued that most of the investors were those who had invested less than Rs1 lakh individually and would stand to lose if the bank was allowed to go under liquidation.
 
The petitioners have instead suggested that steps be taken to help the bank in meeting its obligations towards the investors and protecting the funds.
 
The petitioners have alleged Rs600 crore had been siphoned off by the bank's directors and this money be recovered from them.
 
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