PMC Bank scam: SC stays HC order allowing shifting of HDIL promoters from jail to their residence

The Supreme Court today partially stayed the Bombay High Court order allowing shifting of HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, from Mumbai’s Arthur Road Jail to their residence. Both are accused in the multi-crore Punjab & Maharashtra Cooperative (PMC) Bank scam case.

A bench comprising Chief Justice S A Bobde and 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.

The High Court yesterday set up a three-member committee for valuating and sale of encumbered assets of Housing Development and Infrastructure Limited (HDIL) to expeditiously recover dues payable by the firm to PMC bank.

The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that the bank had allegedly created fictitious accounts to hide over 4,355 crore rupee of loans extended to almost-bankrupt HDIL.

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