EOW asked to hold Dalmia's arrest as Jethmalani mediates

The Bombay High Court today asked the Economic Offences Wing (EOW) not to arrest Delhi-based businessman Sanjay Dalmia after senior counsel Ram Jethmalani said he was trying to negotiate an out-of-court settlement with Indiabulls Financial Services (IFS).

EOW issued notice to Dalmia last week when he failed to appear before the investigating agency, but the Court today said that EOW shall not “act on the notice” till December 14.

IFS has filed a complaint of cheating against Dalmia. But Dalmia’s lawyer, senior counsel Ram Jethmalani, today said that he sat with both the parties last week and nearly arrived at a settlement.

“Then they (IFS) changed their mind yesterday,” he said. Division bench of Justices J N Patel and Amjed Sayed asked Indiabulls lawyer whether they still wanted to settle out-of-court.

IFS lawyers were not averse to give negotiations another chance which made the court adjourned the hearing till December 14. The EOW lawyer, Amit Desai, though mentioned that Dalmia “has been flouting court’s orders so far.”

IFS had lent Rs 225 crore to Dalmiya group companies. It filed a complaint of cheating against him after it found out that the property, which Dalmia had offered as collateral, was not in his name.