There is bad news for the promoters of Adarsh Credit Co-operative as on Wednesday the Supreme Court upturned Delhi High Court judgement granting bail to Mukesh and Rahul Modi. The duo have been ordered to surrender by April 1 by the apex court.
In a rather funny turn of events Delhi Court had granted bail to them in December 2018 even as SFIO kept arguing that Delhi High Court had no jurisdiction in the matter and the case pertained to Gurugram in Haryana.
Earlier, in January while hearing the matter the Supreme Court had raised the issue of validity of the Delhi High Court jurisdiction in deciding on a case that has been filed in Haryana.
The Supreme Court raised two points. First, it asked Rahul Modi, the younger of the two who would mostly attend co-op events in Delhi and abroad– whether the Delhi High Court was competent to grant bail in a case in which the prosecution has been initiated in Haryana?
The second point raised by the apex court was how a habeas corpus petition could be filed when Modis are on remand by a judicial order. Such petitions, experts say, are usually filed when a person is in police custody beyond a reasonable limit of time. As Modis were on judicial remand, the habeas corpus petition is not valid in the matter, they added.
It bears recall that Modis- Mukesh and Rahul were arrested on December 10 by the Serious Fraud Investigation Office (SFIO) and were granted bail by the Delhi High Court on December 20.
Meanwhile, Rahul Modi addressed a press conference saying Adarsh Credit Cooperative Society has signed a deal with the Kolkata based realtor that would allow the society to sell all properties financed by it. This would yield the society an amount of Rs. 9,711 crore. The details of the deal were revealed in a joint press conference addressed by the signatories.
It bears recall that the Central Registrar of Cooperative Societies had ordered liquidation and winding up Adarsh Credit and appointed H.S.Patel, a retired IAS officer as the liquidator in the society.
“The liquidator shall finalize the liquidation proceedings within a period of one year and shall also submit status report showing the progress made in liquidation of the society on quarterly basis”, the communication from the Central Registrar read.
It bears recall that Modis are accused of duping more than 20 lakh depositors in the name of cooperative. The arrested founder chairman of Adarsh Credit Mukesh and his family members are alleged to have been running Ponzi schemes and had floated several fake companies to which they diverted Rs 8400 crore.