PMC Bank scam: the Supreme Court maintains the HC order that allows the transfer of HDIL promoters from jail

NEW DELHI: The Supreme Court on Thursday the order of the superior court of Bombay that directs the change of HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, arrested for their alleged participation in the PMC Bank scam, from Mumbai Arthur Road prison to his residence.

Attorney General Tushar Mehta had mentioned the matter before in a bank and said that the scam of the Cooperative Bank of Punjab and Maharashtra (PMC) involved 7 billion rupees and that the higher court had approved an unusual order on Wednesday while hearing a litigation of public interest (PIL)

Mehta had told the bank that the father-son is currently housed under the Arthur Road jail in judicial custody and that if they are transferred to their residence under the order of the higher court, it would be like a bond for them.

The high court had set up a three-member committee on Wednesday to evaluate and sell the taxed assets of Housing Development and Infrastructure Limited (HDIL) to quickly recover the fees payable by its company to the PMC bank.

The HC had ordered the superintendent of the Arthur Road jail to transfer the defendants to their residence under the supervision of two jail guards to ensure their cooperation with the committee.

He had approved the order while listening to a PIL seeking the address for the rapid disposal of the assets and properties of HDIL attached by the Economic Crimes Wing and the Compliance Directorate and reimbursing PMC bank depositors as soon as possible.

The fraud at PMC Bank came to light in September last year after the Reserve Bank of India (RBI) discovered that the bank had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to almost-bankrupt HDIL.

According to RBI, the PMC bank concealed 44 problematic loan accounts, including those from HDIL, by altering its central banking system, and the accounts were accessible only to limited staff members.

Mumbai Police's economic offences wing and the ED registered offences against senior bank officials and HDIL promoters .