HC rejects Rakesh Wadhawan’s medical bail plea, BFSI News, ET BFSI

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The Bombay High Court on Thursday refused to grant bail on health grounds to jailed businessman Rakesh Wadhawan, accused of money laundering in the multi-crore Punjab and Maharashtra Co-operative (PMC) Bank fraud case. Wadhawan, founder of Housing Development Infrastructure Limited (HDIL), was arrested by the Enforcement Directorate in 2019 in the case.

A single bench presided over by Justice Nitin Sambre said that Wadhawan’s submission that he was immediately required to be released on temporary bail on medical ground, was “not justified”.

It said that denial of medical bail was in no way a breach of Wadhawan’s fundamental right to life since he had been provided adequate medical treatment by the state prison authorities whenever required.

Wadhawan, who recently underwent a surgery for pacemaker implantation, had sought that he be released on bail so that he can seek discharge from the civic-run KEM Hospital in the city, where he is recuperating currently while in judicial custody, and shift to a private hospital while out on bail.

Wadhawan had said in his plea that he suffered from severe co-morbidities, that his immune system had been compromised after having contracted COVID-19 recently, and that he was susceptible to contracting infections and ailments while at the civic hospital due to the heavy footfall the hospital received.

He further said that the KEM Hospital did not have an ICU facility specifically meant for those suffering from cardiac issues.

State’s counsel Prajakta Shinde, however, objected to Wadhawan’s bail plea.

She pointed out that he had been provided timely and specialised medical treatment at state-run and civic hospitals by the state prison authorities from time to time since his arrest.

Shinde said the KEM Hospital authorities had themselves recommended that Wadhawan be shifted to another hospital for the pacemaker implantation surgery since the hospital didn’t have such facility. However, now that the surgery was over, Wadhawan could continue his medical treatment at KEM.

Shinde also submitted documents to show that KEM hospital was currently undergoing renovations and arrangements were being made to set up a cardiac ICU within a few weeks.

The court took note of the state’s submissions and agreed that Wadhawan had indeed been provided the “best possible” medical treatment by the state prison authorities whenever required.

“In the backdrop of aforesaid (treatment having been provided by state authorities), it cannot be inferred that right of the applicant guaranteed under Article 21 of the Constitution for having proper medical treatment in super-speciality hospital is violated,” the high court said.

“Rather, various medical treatments which are given to the applicant are proved to be life-saving at this stage. The claim put forth by the applicant that he is immediately required to be released on temporary bail on medical ground is not justified. It lacks merit and stands rejected,” it added.

The court, however, granted Wadhawan the liberty to approach the court in case of any emergency.



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PMC Bank gets 4 EoIs; RBI extends limits till March

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Meanwhile, the regulator has also extended the restrictions placed on PMC by three months till March 31, 2021, until the proposals are studied.

The crisis ridden Punjab and Maharashtra Co-operative (PMC) Bank has received expressions of interest (EoIs) from four suitors, Reserve Bank of India (RBI) said on Friday. The proposals are being examined for viability, feasibility and also to check whether these are in the interest of depositors.

Meanwhile, the regulator has also extended the restrictions placed on PMC by three months till March 31, 2021, until the proposals are studied.

“Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid directive dated September 23, 2019, as modified from time to time, has been extended for a further period from December 23, 2020 to March 31, 2021, subject to review,” RBI said.

On December 4, RBI governor Shaktikanta Das had said the response from potential investors for reconstruction of PMC Bank looked positive. The bank and its management were fully engaged with the investors who had purchased the information memorandum, Das observed.

Last month, the administrator of fraud-hit PMC Bank had invited EoI from potential investors for investment or equity participation in the bank for its reconstruction. The last date for submission of EoI by potential investors was December 15. As per the details of the proposal, the eligible investors could be financial institutions, including banks and non-banking financial companies (NBFCs). The proposal also allowed investment from individuals or group of individuals/companies, societies, trusts or any other such entities having adequate net worth.

In September, 2019, the RBI had superseded the board of PMC bank and placed it under regulatory restrictions after detection of certain financial irregularities. Initially, the RBI had allowed depositors to withdraw Rs 1,000, which was later raised to Rs 1 lakh per account to mitigate their difficulties. In June this year, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020.

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