New Delhi: The Supreme Court on Thursday stayed a high court order that allowed HDIL promoters to be placed under house arrest. The promoters of the real estate firm HDIL which was behind the massive PMC scam — Rakesh Wadhawan and Sarang Washawan — will remain in Mumbai’s Arthur Road Jail, as they have been there since their arrests in the bank scam. The ED and the Economic Offences Wing of the Mumbai Police told the Apex Court that the duo should not be shifted out.
Solicitor General Tushar Mehta argued that shifting the father-son duo to their luxury home will be like bail to them.
The high court had on Wednesday was hearing a PIL, which urged for speedy disposal of HDIL assets and properties so that PMC bank depositors can be repaid. Hearing the case, the high court set up a three-member committee for valuating and sale of the encumbered assets. It also gave an order to shift both the accused to their residence under the supervision of two jail guards to ensure their cooperation to the committee.
The PMC Bank came under the RBI scanner after an alleged fraud of Rs 4,355 crore emerged which made the Supreme Court cap deposit withdrawals at Rs 1,000 in September last year.
The bank had created over 21,000 fictitious accounts to hide bad loans extended to Housing Development and Infrastructure Limited, which is almost bankrupt. The bank has also under-reported its NPAs to the RBI.
With a network of 137 branches, PMC Bank is a multi-state scheduled urban cooperative bank that operates in states such as Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh, and Madhya Pradesh. One of the prominent commercial banks in India, the PMC Bank ranked among the top 10 cooperative banks in the country.