Left Menu
Development News Edition

Adarsh fraud case: SC asks if Delhi HC has power to grant bail when case initiated in Gurugram

Adarsh fraud case: SC asks if Delhi HC has power to grant bail when case initiated in Gurugram

The Supreme Court said Monday it would examine whether the Delhi High Court was competent to grant bail to a person, against whom the Serious Fraud Investigation Office has initiated prosecution for allegedly siphoning off over Rs 200 crore.

The top court asked the managing director of Adarsh Credit Cooperative Society, Rahul Modi, who was arrested by the Serious Fraud Investigation Office (SFIO) and granted bail by the high court in the case, to reply as how a habeas corpus (unlawful detention or imprisonment) petition could be filed when he was on remand by an judicial order.

The SFIO, which comes under the Corporate Affairs Ministry, mainly probes white collar crimes.

A bench of justices A M Sapre and U U Lalit asked Modi to satisfy it whether the Delhi High Court was correct in granting him bail even when a bail application was not filed.

"You will also have to satisfy us whether the Delhi High Court was a competent court to entertain the petition filed by the accused in the case, when the prosecution was launched in Gurugram in Haryana," the bench said.

Solicitor General Tushar Mehta, appearing for the SFIO, said it was a serious financial fraud case and the high court had set aside the order of a Gurugram special court.The order was not under challenge and the high court does not have the territorial jurisdiction to do so, he claimed.

He said the observation made by the Delhi High Court while granting the accused interim bail was against several judgments passed by the apex court.

Senior advocate Kapil Sibal, appearing for Modi, said that arrest was made in Delhi and the SFIO's headquarter is in the national capital. Therefore, the Delhi High Court has the territorial jurisdiction to entertain the petition, he claimed.

He said there were several judgments of the apex court which say that habeas corpus petitions can be filed even if a person is under remand by an judicial order.

The bench asked then does it mean that if the arrest is made by the SFIO anywhere in the country, then the Delhi High Court has a territorial jurisdiction to entertain a petition.

Sibal said during the remand period he was kept in Delhi and after bail, Modi has been cooperating in the investigation.

Mehta countered the Sibal's arguments, saying the remand order was passed by a special magistrate court in Gurugram and the companies had a registered headquarter in Gurugram.Therefore, the competent court was the Punjab and Haryana High Court, he said.

He alleged that the accused was influencing witnesses and the high court order needs to be stayed till the disposal of the plea.

The hearing remained inconclusive and would continue on January 23.

The SFIO has challenged the December 21, last year order of Delhi High Court by which it had granted interim bail to founder and managing director of Adarsh Credit Cooperative Society, Mukesh Modi and Rahul Modi, who were arrested by the agency.

It had observed that the arrest of the duo on December 10 last year was "absolutely illegal and patently suffers from vice of lack of legal sanction and jurisdiction".

Mukesh Modi and his family members were allegedly running Ponzi schemes, duping over 20 lakh depositors. The Ahmedabad-based Adarsh Credit Cooperative Society had started its operations in 1999.

The deposits collected from members of the Adarsh Credit Cooperative Society were used for the benefit of a few family members belonging to the Mukesh Modi family.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...

How India is being pushed towards commercialization of higher education

The reluctance of the present dispensation in pushing the higher education towards commercialization is not just limited to the fees hike in Jawaharlal Nehru University JNU. It seems the government is gradually implementing a plan which is ...


Latest News

Demonic attacks on women have shaken conscience of county: President

President Ram Nath Kovind on Friday said demonic attacks on women have shaken the conscience of the country and much remains to be done on this subject. Womens safety is a very serious issue. A lot of work has been done on this subject but ...

Man held for molesting minor step-daughter

A 45-year-old man was arrested for allegedly molesting his 14-year-old step-daughter in Chhattisgarhs Korba district, police said on Friday. The accused was arrested on Thursday based on the complaint filed by his wife at Balco police stat...

Equality and harmony could only be possible by empowering women: President

The President of India, Shri Ram Nath Kovind graced and addressed a National Convention on Empowerment of Women for Social Transformation at the headquarters of Brahma Kumaris in Mount Abu, Rajasthan today December 6, 2019. Speaking on the...

Nupur Sanon shares emotional post for sister Kriti after catching 'Panipat' first day

Kriti Sanons sister Nupur Sanon shared a long and emotional post on Instagram praising her sister for her performance in Ashutosh Gowarikers period drama Panipat. After catching the movie on the first day of its release, Nupur posted a coup...

Give Feedback