**Title:** PMC Bank’s Loan Dispute with Awas Developers Escalates
**Meta Description:** Awas Developers contests PMC Bank’s repayment claims, asserting inflated demands despite limited loan disbursement.
**URL Slug:** pmc-bank-awas-developers-dispute
**Headline:** Awas Developers Challenges PMC Bank’s Claims Amid Loan Dispute
The financial controversy surrounding Punjab and Maharashtra Co-operative (PMC) Bank has intensified with new revelations regarding Awas Developers and Construction Pvt. Ltd. The company asserts that it received only Rs 30 crore of the Rs 135 crore loan limits sanctioned by PMC Bank between 2008 and 2019. Despite this, Awas Developers is now facing repayment demands exceeding Rs 170 crore.
Records indicate that PMC Bank approved various credit limits for Awas Developers at different times: Rs 75.25 crore in 2015, Rs 65.25 crore and Rs 10 crore in 2017, and Rs 135 crore in 2019. However, there is no evidence of any funds being disbursed after August 2012. Awas Developers claims that even without the release of funds, the bank continued to impose interest charges, creating the illusion that the accounts were active.
The company provided land assets in Mumbai, Palghar, and Thane as collateral, anticipating the full loan amount would be disbursed. With no funds received post-2012, Awas Developers contends that its liability should be limited to the Rs 30 crore it actually received. The arbitration claim from PMC Bank, demanding Rs 170 crore, has been labeled by the company as exaggerated and unfounded.
A similar situation has emerged with Prithvi Realtors and Hotels Pvt. Ltd., which was sanctioned Rs 87.5 crore without any disbursement, yet interest entries inflated the outstanding claim to over Rs 150 crore.
The Reserve Bank of India’s inspection report in 2019 revealed over 21,000 irregular loan entries at PMC Bank, totaling around Rs 5,000 crore. These entries were allegedly utilized to obscure bad loans and present a misleading financial status to regulators and depositors.
Awas Developers has now sought legal recourse, stating it will only accept responsibility for the actual funds received. The matter is currently under arbitration.
**FAQ Section:**
**Q: What is the main issue between Awas Developers and PMC Bank?**
A: Awas Developers is contesting PMC Bank’s repayment claims, arguing that it only received a fraction of the approved loan amounts and that the bank’s demands are inflated.