PMC Bank Crisis: Supreme Court stays sale of HDIL assets; agrees to hear RBI's plea
Litigation News

PMC Bank Crisis: Supreme Court stays sale of HDIL assets; agrees to hear RBI's plea

The RBI has moved the Apex Court seeking a stay on the Bombay High Court's judgment allowing the sale of HDIL assets on the ground that the order was passed without hearing the RBI.

Shruti Mahajan

The Supreme Court today stayed the sale of HDIL assets in the case concerning PMC Bank crisis while agreeing to hear RBI's plea.

The Reserve Bank of India (RBI) had moved the Apex Court seeking a stay on the Bombay High Court's judgment allowing the sale of Housing Development and Infrastructure Limited (HDIL) assets on the ground that the High Court passed the order without hearing the RBI.

The Bench of CJI SA Bobde with Justices BR Gavai and Surya Kant today issued notice on RBI's plea while staying Bombay High Court's order allowing the sale.

Senior Counsel Rakesh Dwivedi argued for RBI, briefed by AZB & Partners team Anindita Roy Chowdhury, Raghav Chadha, Sayobani Basu, Vanya Chhabra and Simran Bhat along with AOR Mayank Pandey.

Earlier the Enforcement Directorate (ED) had also moved a plea challenging the Bombay High Court order a day after it was passed. In response, the Supreme Court had granted an interim stay on the order on the limited aspect concerning the release of the accused from Arthur Jail and for their lodging in their residence.

In its January 15 order, the Bombay High Court had also appointed a three-member committee headed by retired High Court Judge, Justice S Radhakrishnan for the speedy disposal and auction of HDIL assets and the distribution of such proceeds on priority to depositors of the crisis-hit Punjab and Maharashtra Cooperative Bank (PMC Bank).

To ensure cooperation with the Committee, the Court had 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.

[Read Order]

RBI vs Damania (PMC Bank Crisis) - February 7.pdf
Preview
Bar and Bench - Indian Legal news
www.barandbench.com