The Supreme Court on Thursday stayed a Bombay High Court order that allowed promoters of real estate firm Housing Development and Infrastructure Limited – Rakesh Wadhawan and Sarang Wadhawan – to be placed under house arrest, PTI reported.
The top court said the Wadhawans, arrested for their alleged involvement in the Punjab and Maharashtra Cooperative Bank scam, should not be shifted from Arthur Road jail in Mumbai.
A bench led by Chief Justice SA Bobde and comprising Justices BR Gavai and Surya Kant took note of the submissions made by Solicitor General Tushar Mehta. Mehta said the High Court had on Wednesday passed a very “unusual order” while hearing a public interest litigation to shift the promoters to their residence under the constant watch of prison guards. “The High Court virtually granted bail on a PIL,” he added.
The Centre moved the Supreme Court asking for an urgent hearing in the matter on Thursday.
The Bombay High Court had also constituted a three-member committee on Wednesday to auction the assets of companies owned by the two accused to recover the money they owe to the depositors of the PMC bank.
The Enforcement Directorate is looking into allegations that the bank did not report all non-performing assets, or bad loans, after providing funds to a number of companies. The scam is said to be worth Rs 4,355 crore. The loan defaults are said to have caused a liquidity crisis at the bank.