PMC Bank scam: SC stays HC order allowing shifting of HDIL promoters from jail to their residence


Team Udayavani, Jan 16, 2020, 12:29 PM IST

New Delhi: The Supreme Court on Thursday partially stayed the Bombay High Court order allowing shifting of HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, accused in the multi-crore Punjab & Maharashtra Cooperative (PMC) Bank scam case, from Mumbai’s Arthur Road Jail to their residence.

A bench comprising Chief Justice S A Bobe and justices B R Gavai and Surya Kant took note of the submissions of Solicitor General Tushar Mehta that the high court order to the extent of allowing their release from prison needed to be stayed.

The law officer said the other aspect of the high court order such as sale of assets of the accused promoters under the supervision of high court-appointed committee should be allowed to remain operative and the sole objection was with regard to their release from Arthur road jail.

The top court agreed with the submissions.

Earlier during the day, the apex court had agreed to consider the plea of enforcement agencies against the high court order to release them from jail and keeping them in their residence under the constant watch of prison guards.

Mehta mentioned before the bench that the PMC bank scam involved Rs 7000 crore and the high court had on Wednesday passed a very “unusual order” while hearing a public interest litigation (PIL).

Mehta told the bench that the father-son are presently lodged under Arthur Road jail in judicial custody and if they are shifted to their residence as per the high court’s order, it would be like bail to them.

The high court had on Wednesday set up a three-member committee for valuating and sale of encumbered assets of Housing Development and Infrastructure Limited (HDIL) to expeditiously recover dues payable by the firm to PMC bank.

The high court had directed the superintendent of Arthur Road Jail to shift both the accused to their residence under the supervision of two jail guards to ensure their cooperation to the committee.

The high court had passed the order while hearing a PIL seeking direction for expeditious disposal of HDIL assets and properties attached by the Economic Offence Wing and the Enforcement Directorate and repaying PMC Bank depositors at the earliest.

The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that the bank had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to almost-bankrupt HDIL.

According to RBI, the PMC bank masked 44 problematic loan accounts, including those of HDIL, by tampering with its core banking system, and the accounts were accessible only to limited staff members.

Mumbai Police’s Economic Offences Wing and the ED registered offences against senior bank officials and HDIL promoters.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Temple idols found desecrated in Hyderabad, case registered

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

JPC chairman Jagdambika Pal to visit K’taka on Nov 7 to meet farmers protesting Waqf notices

Indian boxer Mandeep Jangra wins WBF’s world title

IOA submits ‘Letter of Intent’ to host 2036 Olympics in India

CBDT allows tax officials to waive or reduce interest due from assessee

Like UP, bring BJP to power in Jharkhand to ‘bulldoze’ mafia: Yogi at Koderma poll rally

Related Articles More

Temple idols found desecrated in Hyderabad, case registered

Rebels to be shown the door: Maharashtra BJP chief Bawankule

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

People of Wayanad will ask me not to come there often: Priyanka Gandhi

Indian boxer Mandeep Jangra wins WBF’s world title

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Temple idols found desecrated in Hyderabad, case registered

Rebels to be shown the door: Maharashtra BJP chief Bawankule

Rohit Shetty says ‘Singham Again’ his fastest Rs 100 crore film, thanks audience for support

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

People of Wayanad will ask me not to come there often: Priyanka Gandhi

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.