PMC Bank scam: SC stays HC order allowing shifting of Wadhwans from jail

The high court had set up a three-member committee for valuating and sale of encumbered assets of HDIL to expeditiously recover dues payable by the firm to PMC bank.

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

A bench comprising Chief Justice S A Bobe 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 law officer said the other aspect of the high court order such as sale of assets of the accused promoters under the supervision of high court appointed committee should be allowed to remain operative and the sole objection was with regard to their release from Arthur road jail.

The top court agreed with the submissions.

Earlier during the day the apex court had agreed to consider the plea of enforcement agencies against the high court order to release them from jail and keeping them in their residence under the constant watch of prison guards.

Mehta mentioned before the bench that the PMC bank scam involved Rs 7000 crore and the high court had on Wednesday passed a very "unusual order" while hearing a public interest litigation (PIL).

Mehta told the bench that the father-son are presently lodged under Arthur Road jail in judicial custody and if they are shifted to their residence as per the high court's order, it would be like bail to them.

The high court had on Wednesday 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.

PMC Bank case: Praful Patel used Wadhawans' aircraft eight times, says ED

So far, the ED has attached and identified assets worth Rs 3,830 crore in the PMC money laundering case.

Trouble is mounting for former Union minister Praful Patel, with the Enforcement Directorate (ED) finding his name on the passenger manifest of an aircraft that belongs to the Wadhawans, HDIL promoters.

The documents examined by the ED, which is probing the Rs 4,355-crore Punjab & Maharashtra Co-operative (PMC) Bank loan case, show that Patel used the aircraft multiple times in 2012 when he was civil aviation minister.

The probe agency, in this case, has seized two aircraft — Bombardier Challenger-300 VT and Falcon 2000 VT, owned by Privilege Airways. Rakesh Wadhawan and son Sarang Wadhawan of Housing Development & Infrastructure (HDIL) are directors of Privilege Airways

According to ED sources, Patel had used the aircraft at least eight times in 2012 between February and May. The documents showed that the Nationalist Congress Party (NCP) leader was accompanied by some other party leaders during these trips. The destinations were mostly Mumbai to Nagpur, Delhi, and Gondia.

So far, the ED has attached and identified assets worth Rs 3,830 crore in the PMC money laundering case. These assets belong to its directors, promoters, PMC Bank officials, and others. The assets, both immovable and movable, will be attached under provisions of the Prevention of Money Laundering Act (PMLA) after valuation, it said.

During the search in the case, ED has reportedly found incriminating documents revealing instances of siphoning of the funds and their misuse.

Certain transactions are showing a clear diversion, such as a Rs 98-crore loan from PMC Bank was diverted to M Estate Developers, a proprietorship concern of a close business associate of Rakesh Wadhawan. The Mumbai Police EOW has already arrested the Wadhawans in connection with the case, besides former MD of PMC Bank Joy Thomas.

Business Standard