PMC scam: Two jailed HDIL promoters withdraw bail plea from SC

HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, who are in jail in connection with the multi-crore rupees Punjab & Maharashtra Cooperative (PMC) Bank scam case, on Friday withdrew their bail pleas from the Supreme Court. A bench headed by Chief Justice S A Bobde did not agree to the submission of senior advocate Mukul Rohatgi, appearing for the Wadhawans, that the trial court has not been entertaining their bail plea on the ground that the apex court was seized of the matter.

"Where is the order in which it has been said (by the trial court) that it will not hear the bail application," said the bench which also had Justices B R Gavai and Surya Kant.

Rohatgi said the Bombay High Court allowed the accused to be shifted to their homes from Mumbai's Arthur Road Jail and this order was stayed by the Supreme Court and now the trial court is not entertaining their bail applications on merits. As the bench was reluctant to grant any relief, the counsel for the jailed HDIL promoters decided to withdraw the plea.

"Mukul Rohatgi, senior counsel appearing for the petitioners prays for withdrawal of this petition. Prayer is allowed. Accordingly, the special leave petition is dismissed as withdrawn," the bench said in its order.

Earlier, the top court had stayed the Bombay High Court order directing sale of bankrupt Housing Development and Infrastructure Ltd (HDIL) to ensure repayment of dues of crisis-hit Punjab and Maharashtra Cooperative Bank. Prior to this, it had also partially stayed the high court's order allowing shifting the Wadhawans from Mumbai's Arthur Road Jail to their residence. The Bombay High Court had set up a three-member committee for valuation and sale of encumbered assets of HDIL to expeditiously recover dues payable by the firm to PMC Bank.

The high court had passed the order while hearing a PIL seeking direction for expeditious disposal of HDIL assets and properties attached by the Economic Offence Wing and the Enforcement Directorate and repaying PMC Bank depositors at the earliest. The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that it had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to HDIL.

According to RBI, the PMC Bank masked 44 problematic loan accounts, including those of HDIL, by tampering with its core banking system, and the accounts were accessible only to limited staff members. The Mumbai Police's Economic Offences Wing and the ED registered offences against senior bank officials and HDIL promoters.