[Breaking] PMC Scam: Supreme Court stays Bombay HC direction for release of accused from Arthur Jail

The Supreme Court today granted an interim stay in the order passed by the Bombay High Court in the PMC bank scam case on the limited aspect concerning the release of the accused from Arthur Jail and for their lodging in their residence.

The Enforcement Directorate (ED) had approached the Supreme Court today challenging the Bombay High Court order, one day after it was passed. The High Court had directed for the two accused persons to be released from the Arthur Jail and to be kept in their own residence to enable disposal of their properties.

These directions were contained in direction numbers (xv) and (xvi) of Paragraph 15 of the High Court's order and have now been stayed by the Supreme Court Bench of CJI SA Bobde with Justices BR Gavai and Surya Kant. Coming back to the Court upon procuring diary number, Solicitor General pressed for a stay on the grounds that release of the accused persons was not a relief sought before the High Court.

Citing the urgency in the case, the matter was mentioned for urgent listing today when the CJI told Solicitor General Tushar Mehta that the matter will be taken up for hearing as soon as a diary number is given to the case.

The Apex Court thus granted an interim stay on the two directions in relation to the multi-crore PMC Bank Scam case.

The petition was drafted and filed by Advocate Zoheb Hossain and the ED was represented by SG Tushar Mehta.

The Bombay High Court had yesterday appointed a three-member committee headed by retired High Court Judge, Justice S Radhakrishnan for the speedy disposal and auction of Housing Development and Infrastructure Limited (HDIL) assets and the distribution of such proceeds on priority to depositors of the crisis-hit Punjab and Maharashtra Cooperative Bank (PMC Bank).

Moreover, to ensure cooperation with the Committee, the Court also directed Rakesh and Sarang Wadhawan (the promoters of HDIL) to be shifted from Arthur Road jail to their Bandra residence, where they will be in the custody of two guards each until further orders. The guards had been further directed to ensure that the respondents are not taken outside the jurisdiction of the High Court.