The Bombay High Court had recently, in an order, allowed the plea of HDIL directors — Rakesh Wadhawan and Sarang Wadhawan — to shift them from Arthur Road jail to their residence to enable them to sale their assets.
Protesters gather outside a PMC Bank branch. (File Photo: IANS)
The Supreme Court on Thursday stayed the release of HDIL directors, Rakesh Wadhawan and Sarang Wadhawan, accused in the PMC Bank case, from Mumbai jail.
The Bombay High Court had recently, in an order, allowed the plea of HDIL directors to shift them from Arthur Road jail to their residence to enable them to sale their assets.
Earlier in the day, a bench headed by Chief Justice SA Bobde and comprising Justices BR Gavai and Surya Kant agreed to hear the plea by Solicitor General Tushar Mehta against the High Court order.
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The Enforcement Directorate had rushed to the apex court challenging the relief granted to PMC bank scam accused and HDIL directors.
The Bombay High Court had ordered for setting up a three-member committee to conduct the valuation and sale of encumbered assets of Housing Development and Infrastructure Ltd (HDIL) to recover the dues, which the firm was supposed to pay the crisis-hit Punjab & Maharashtra Cooperative (PMC) Bank.
The High Court had therefore allowed the father and son — Rakesh and Sarang Wadhawan — to be shifted to their house from jail under supervision of two jail guards and to ensure their cooperation with the committee.
Technically, the two accused would be under house arrest at their residence.
The High court observed: “We are conscious of the plight of lakhs of depositors who have deposited their hard-earned money and life savings in the PMC Bank.
“The respondents (Rakesh and Sarang Wadhawan) are instrumental for the huge fraud perpetuated by them through HDIL and other companies.”
The bank has come on the regulatory radar after Housing Development & Infrastructure Ltd and its directors failed to repay a Rs 4,355 crore loan taken from PMC Bank putting the bank under liquidity stress.
Four people, including promoters of realty firm HDIL to which the bank made the sour loans, and the lender’s former chairman and ex-managing director have so far been arrested in connection with the alleged Rs 4,355 crore scam.
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