ED seized / frozen and identified movable and immovable assets worth more than ? 3830 crores owned by M/s Housing Development and Infrastructure Limited (HDIL), its Directors / Promoters, PMC Bank officials and others related entities in the PMC Bank fraud case.
— ED (@dir_ed) October 14, 2019
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Tier-II bond-like debt instruments (LTD) issued by many Coop Banks including (PMC) to gullible customers (and has no regulatory oversight)
It is mostly unknown to many that PMC bank has issued high risk ‘LTD’ product. Investors in LTD should forget getting money back. RBI’s directions to cooperative bank on issue of specific unrated loan/debt product to qualify for tier-II capital of such bank
[mis-tiltled by RBI as Long Term Deposit (LTD)] are ‘pathetic’. It is a debt procurement instrument with several severe conditions about repayment attached to it. It is surrogate of bond/debenture by whatever name RBI may call it to be.
Considering the associated risk to investors/depositors (LTD product) I first took the matter RBI’s Legal and Coop Bank Regulation departments of RBI and after seeing no response (to my dozens of communications), I took the public interest matter with High Court of Bombay. After the reference of the honourable high court of Bombay to RBI based on my initiative, RBI hurriedly changed its directions* issued in year 2008 and issued amendment to directions in year 2015. However even RBI’s modified ‘LTD’ guidelines to major extent are very defective even now. Around that time I also made a clear reference (text can be shared) to SEBI but both RBI and SEBI tossed the matter to each other. After some time I stopped following up the matter. But in case of instances like PMC bank (above) and another co-op bank) mainly senior citizen category depositors/investors do suffer.
I think someone may write on the fate of LTD (Tier-II bond) holders of PMC bank (other banks like TJSB /Sarawat Coop Bank, who also issued them and marketed them vehemently, as it helped to augment tier-II capital), wherein main investments came from pensioners (these are actually retail bonds) or (debentures you may call like issued by corporate without SEBI’s approval).
 
For various reasons one may clearly say that this LTD product is totally unregulated. The whole bond / ‘LTD’ issue, even today, is going on without following established law of the land (stamp Act, lack of existing route, nature of the instrument, listing, nomination rules, to name a few). In 2015-16 I perused ‘LTD’ documentation of PMC and found it just horrible. I had then taken up public interest matter with RBI, with vague response from PMC bank.
You may notice observe that ‘LTD’ is a high-risk debt capital instrument issued by co-op banks. Several retired personnel are existing investors / called depositors (funds raised in future are going to be huge). It is not a deposit per se.
Probably, RBI is not still aware that it had entered the domain of SEBI and is actually permitting “private placement of a public issue†(a terminology not prevalent anywhere in the finance world) to the general public to whom it can be easily ‘mis-sold’. On the guise of simple investment avenue probably (inadvertently) promoting an illegitimate product. SEBI has banned retailing of tier-ii debenture/bonds by banks issuing offer document
It is a risky product as a popular Money market Product CBLO(which after my years of a long battle with RBI) that was withdrawn by RBI, silently. Both SEBI and RBI seem to now revisit this matter. Extract of my communication to SEBI & reply I received from SEBI can be shared.
*RBI issued DCB. BPD. MC 10/09.18.201 /2015-16 dt: 01-07-2015 modifying its original circular UBD.PCB.Cir No.4/09.18.201/-8-09 dt: 15-07-2008 (I have with me internal RBI correspondence, which I got under RTI)
#6monthsishugeforthissection
#letthemlive
Lets join hands and plea the Government ;trustfully voted Modi Sarkar; RBI official aka trustful body to safegaurd customers interest; PMC bank aka trusted insitution to safegaurd their living needs and medical emergencies of more than 50 years of hardearned savings.Their money made look the banks richer and healthier ( rated as Top 5 cooperative banks of India) and so the economy.
The broken spines and dried eyes are now withunstoppable tears and going through an agony which needs to be mended ASAP pleading joining hands for their own money own savings for their daily living, medical routine; deferred dreams for today and meet huge medical emergencies they foresee.Perhaps dreams of 4 decades saving on a beautiful trip in their old age.To spend their money with pride today.They deserve yes they well deserve it all!
Biggest shock for Senior Citizens!
Like every zone every facet on special treatment to senior citizens-6 months period of restriction please waive for this most deserving weaker and vulnerable section of the society.Process 100% of their monies in form of savings or deposits etc to them respectfully.
They have contributed for more than 5 decades to the society ; paid taxes; declared their incomes.Their need is urgent and humongous.
Modiji / RBI / India : Can we wipe tears from their eyes staring with hope; shivering hands ; knowing no one to plead to; broken spine ; shaky walk ....lets help them to stand back !!!!
They immediately need it all.their life their savings their Life Support.Don't let them break or die with pain they have already seen and suffered many...
Let's make the plead Viral and share it on minimum 5 whatsapp group or as many as you can.All your social media handles.And make reach their plea for section who cant speak for themselves.But they did maximum for the economy.They are the most loyal vote banks.Maximum years of tax paying.Maximum years of contribution to economy.
On behalf of Senior Citizens:(
#stoptearsof60yearsplus
#handovertheirlife100%return
#movementforweakersectionbutmostimportant
All of equally affected but lifesaving support is immediate need of this section.Let them proudly say again "Har baar Modi Sarkaar"