Suspension – II

The Supreme Court on Monday gave Central Bank 14 days to re-suspend Pramuka Banks license to facilitate restructuring.
The Court concluded that interested parties could not restructure the bank without its license as per the Banking Act. rn

rnCentral Bank officials requested 14 days to prepare a fresh suspension order, until when Pramuks license will remain cancelled. rn

rnOnce, re-suspended, Central Bank will have to look at further proposals to restructure the ill-fated venture.rn

rnCentral Bank was also ordered to exhaust all options available to restructure Parmuka before considering liquidation. 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