SC stays release of PMC Bank scam accused from jail

38

The Supreme Court on Thursday stayed the release of HDIL promoters Rakesh and Sarang Wadhawan – prime accused in the PMC Bank scam – from Mumbai jail to their residence.

A bench headed by Chief Justice S.A. Bobde and comprising 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.

Solicitor General Tushar Mehta mentioned before the bench that the PMC bank scam involved Rs 7,000 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 both accused are at present 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 Bombay High Court on Wednesday 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 payable by the firm to PMC Bank.

Consequently, the High Court had allowed the father-son to be shifted to their house from jail under the supervision of two jail guards to ensure their cooperation with the committee.