Quashed

The Appeal Court in its verdict at Wednesday mornings hearing has quashed Central Banks decision to liquidate Pramuka Bank.
Court has also asked the regulator to explore other options to revive the Bank through powers available under section 76 of the Banking Act and also reconsider proposals made by the Depositors Association with the aid of Janashakthi Capital, a shareholder of Pramuka. rn

rnDepositors had earlier alleged inter alia that Central Bank had not explored all options to restructure the bank but had prematurely decided to liquidate the bank.rn

rnThe Central Bank cancelled Pramukas licence on December 19, after suspending it on October 25 following alleged financial irregularities. rn

rnCentral Bank in an earlier statement said that Pramuka was insolvent, mismanaged and had undertaken a series of highly irregular banking transactions. rn

rnThe Bank said the decision to opt for liquidation was made after it saw less or no commitment from Pramuka Directors and shareholders to infuse f