The Supreme Court on Wednesday set aside the Delhi High Court order granting bail to Rahul Modi and Mukesh Modi in case related to alleged duping of investors of Rs 200 Cr through Ponzi scheme.
The Delhi High Court had in December 2018 given Mukesh Modi, founder and Rahul Modi, managing director of Ahmedabad-based Adarsh Credit Cooperative Society bail while hearing a habeas corpus petition.
Both were arrested by the Serious Fraud Investigation Office on prosecution launched in Gurugram.
A bench of Justices Abhay Manohar Sapre and U U Lalit allowed the appeal filed by the SFIO, which worked under the Union Finance Ministry, against the high court's judgement of December 21, 2018.
The court ordered both Rahul and Mukesh to surrender before the Gurugram court by April 1.
The SFIO claimed the high court did not have the territorial jurisdiction as the case was registered in Gurugram. The high court had set aside the order by the Gurugram's special court.
It also maintained the bail was granted in habeas corpus proceedings, even though there was no prayer for bail.
The high court termed their arrest as "absolutely illegal".
The Modis were accused of duping 20 lakh investors of their money.
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