SC stays release of HDIL directors from Mumbai jail in PMC Bank scam case

The Supreme Court (SC) on Thursday stayed the release of Housing Development Infrastructure Ltd (HDIL) directors, Rakesh Wadhawan and Sarang Wadhawan, from Mumbai jail in Punjab and Maharashtra Cooperative (PMC) Bank scam case. The duo is accused in the case. 

SC stays release of HDIL directors from Mumbai jail in PMC Bank scam case

The Supreme Court (SC) on Thursday stayed the release of Housing Development Infrastructure Ltd (HDIL) directors, Rakesh Wadhawan and Sarang Wadhawan, from Mumbai jail in Punjab and Maharashtra Cooperative (PMC) Bank scam case. The duo is accused in the case. 

Recently, the Bombay High Court in its order had allowed the plea of the directors and had ordered they be shifted from Arthur Road prison to their residences with jail posting two guards at their residences. The Bombay HC had passed its order to enable the directors to sell their assets.

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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. The Enforcement Directorate (ED) had rushed to the apex court challenging the relief granted to PMC bank scam accused and HDIL directors.

The high court had ordered for setting up a three-member committee to conduct the valuation and sale of encumbered assets of HDIL to recover the dues, which the firm was supposed to pay the crisis-hit PMC Bank. It 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.

The high court had 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 perpetrated by them through HDIL and other companies."