You are here: Home » PTI Stories » National » News
Business Standard

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

Press Trust of India  |  New Delhi 

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

The top court asked the of Adarsh Credit Cooperative Society, Rahul Modi, who was arrested by the (SFIO) and granted 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 High Court was correct in granting him even when a bail application was not filed.

"You will also have to satisfy us whether the 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.

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 while granting the accused interim bail was against several judgments passed by the apex court.

Kapil Sibal, appearing for Modi, said that arrest was made in Delhi and the SFIO's headquarter is in the national capital. Therefore, the 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 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 court in Gurugram and the companies had a registered headquarter in Gurugram.Therefore, the competent court was the and 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 of Adarsh Credit Cooperative Society, 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".

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

The deposits collected from members of the were used for the benefit of a few family members belonging to the family.

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

First Published: Mon, January 14 2019. 19:30 IST
RECOMMENDED FOR YOU