SC stays 'virtual bail' to 2 HDIL directors in PMC bank scam

The Supreme Court on Thursday stayed the Bombay High Court order of January 15 which allowed two accused of the Rs 7,000-crore PMC Bank scam to be taken out of jail for disposal of their assets.

The two accused, HDIL directors Rakesh and Sarang Wadhawan, reportedly owed Rs 4,635 crore to PMC Bank.

A bench of Chief Justice S A Bobde and Justices B R Gavai and Surya Kant granted a stay on the particular paragraph of the order, directing the Arthur Road jail authorities to take the accused to their residence with two guards.

The Centre on Thursday moved the top court challenging validity of the "unusual" order by the High Court, saying it granted virtual bail to the two accused in Rs 7,000-crore PMC Bank scam, acting on a PIL for recovering due from them.

Solicitor General Tushar Mehta mentioned the matter, seeking urgent hearing on Thursday itself.

The court agreed to consider it on Thursday as soon as the petition gets filed in the registry and numbered.

In his plea, Mehta said there was a defalcation of public money. The HC directed for the disposal of the properties of the accused in judicial custody and for the purpose

This is a scam of Rs 7,000 crore and the accused can't be granted virtual bail in this manner, he said.

The HC had on Wednesday also appointed a committee headed by a former judge, Justice S Radhakrishnan, for speedy disposal of properties of the Housing Development and Infrastructure Ltd, a borrower to the crisis-hit Punjab and Maharashtra Cooperative Bank.

The HDIL directors Rakesh and Sarang Wadhawan were directed to cooperate in this process.

The PIL in the HC claimed the real estate developer owed Rs 4,635 crore to the PMC.