The Supreme Court on Thursday stayed an order passed by the Bombay High Court for releasing Rakesh Wadhawan and Sarang Wadhawan, both promoters of Housing Development and Infrastructure Ltd (HDIL) in the multi-crore Punjab & Maharashtra Cooperative (PMC) Bank fraud.
A bench comprising chief justice SA Bobde and justice BR Gavai and justice Surya Kant took note of the submissions by Solicitor General Tushar Mehta that the High Court order to the extent of allowing their release from prison needed to be stayed.
Earlier, the Bombay HC had allowed the plea of HDIL promoters and directors, Rakesh Wadhawan and Sarang Wadhawan, and had ordered they be shifted from Arthur Road prison to their residences with jail authorities posting two guards at their residences.
On Wednesday, the Bombay HC had decided to set up a three-member committee for valuating and sale of encumbered assets of HDIL to expeditiously recover dues payable by the company to PMC Bank.
In December 2019, Sarang Wadhwan from HDIL had requested the High Court for his release and said, he had no objection if all encumbered properties are sold for recovery of monies payable to the PMC Bank.
In the petition, Advocate Sarosh Damania had contended that "the properties of companies owned, controlled, promoted or managed by Wadhwans are already attached by the enforcement directorate (ED) and economic offences wing (EOW) of Mumbai police and if normal procedure as provided under the relevant rules and regulations is to be followed, it would take years together to repay the deposits of PMC Bank, and therefore in the interest of justice, the said properties must be auctioned under the supervision of the retired judge of this Court (Bombay HC) or the Supreme Court."