Supreme Court stays release of PMC Bank accused against the Bombay High Court order

The Bombay High Court had asked authorities to shift Rakesh and Sarang Wadhawan from jail to their residences under ‘house arrest’.

The Supreme Court on Thursday stayed the release of Rakesh and Sarang Wadhawan – prime accused in the PMC Bank scam – from jail to their residence. The order came on Centre’s plea against the Bombay High Court order to the police to release them.

The central government on Thursday moved Supreme Court asking for an urgent hearing in the matter.

The Bombay High Court has asked for auction of the properties of accused and the money to be distributed among account holders of PMC Bank.

Appearing for the Centre, Solicitor General Tushar Mehta had told the apex court that the Bombay High Court passed an unusual order on Wednesday by releasing the two accused, who were in the management of the bank, and are currently in judicial custody.

“It is an unusual order. The high court virtually granted bail on a PIL,” Mehta. had said

The father-son duo of Wadhawans were promoters of Housing Development and Infrastructure Limited (HDIL), and triggered the PNB Bank sam.

The Bombay High Court had constituted a three-member committee on Wednesday for auctioning the assets of companies owned by the two accused and distribution of amount so realised to the depositors of crisis-hit PMC Bank.

The high court had also ordered that the two accused should assist the committee in its exercise to realise amounts from auctioning properties. The accused, the court said, will remain in custody with two guards each posted at their residences. They would also not be allowed to travel beyond Maharashtra, the Bombay High Court further said in its order

The order was passed by the high court on a Public Interest Litigation (PIL) filed by an advocate Sarosh Damania.

On December 27 last year, the Economic Offences Wing (EOW) of the Mumbai Police had filed the first chargesheet in the multi-crore scam in Esplanade Court.

The EOW had arrested 12 people in connection with the case, however, chargesheet of over 32,000 pages had been filed against the main accused Rakesh and and Sarang Wadhawan, Waryam Singh, Joy Thomas, and Surjit Arora