PMC Bank Scam: SC Refuses To Let HDIL Promoters Wadhwans Out Of Jail To Sell Assets; Stays Bombay HC Order

The Supreme Court on Thursday (16 January) stayed a Bombay High Court order that would have shifted the two main accused in the Punjab & Maharasthra Cooperative (PMC) bank scam, from Arthur Road jail to their residence to enable them to sale their assets.

Earlier in the day, a bench headed by Chief Justice S A Bobde and comprising Justices B R Gavai and Surya Kant agreed to hear the plea by Solicitor General Tushar Mehta against the High Court order.

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."

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)