As the Apex Court began hearing on the controversial transfer, Solicitor General Santosh Hegde informed the three-judge Bench headed by Justice S P Bharucha that the Government was willing to revoke the transfer of Bezbaruah to disprove any impression that it was done with an ulterior motive.

However, the Bench said the ``willingness was unacceptable'' as the August 13 order repatriating Bezbaruah to Delhi Government smacked of ``arbitrariness''.

The Solicitor General then made a written statement that ``Union of India shall revoke the August 13 order transferring Bezbaruah (from Enforcement Directorate to Delhi Government as Principal Secretary and Commissioner Transport) with immediate effect and post him as Enforcement Director.''

Following the Solicitor's statement, the Bench comprising Justice Bharucha, Justice G T Nanavati and Justice B N Kirpal ordered, ``We direct Union of India to give effect forthwith to the statement.''

Hegde, however, said after Bezbaruah was reinstated as the Director Enforcement, his continuance or transfer will be decided in accordance with law by the select committee to be set up in pursuant to an earlier SC order.

``The continuance of Bezbaruah as Director Enforcement, his transfer or replacement will be decided by the select committee in accordance with law,'' the Solicitor General said.

The SC had yesterday criticised the Government for taking shelter behind a ``misquoted judgment'' to justify the transfer of Bezbaruah and had pulled up the Government for misleading the Court.

The Government had informed the Court that Bezbaruah was not joining as the Principal Secretary and Commissioner Transport to the Delhi Government and had sought continued employment with the Central Government.

The Apex Court, while hearing a petition filed by Janata Party president Subramanian Swamy seeking investigations into the multi-crore Indian Bank scam, had on August 18 described Bezbaruah's transfer as ``very distressing'' and had made the transfer subject to its further orders.

The Court had recorded Hegde's statement that ``no cases which were/are investigated, supervised by Bezbaruah shall be closed/conceded until the next date of hearing''.

Amicus curiae Anil Divan was from the beginning saying that Bezbaruah, as ED chief, was directly and personally monitoring and supervising several sensitive cases relating to powerful persons including businessmen, politicians and others.

Divan had said, ``These cases include those arising out of the Jain hawala case, alleged violations of FERA by Chandraswami and Ashok Jain and other powerful individuals.''

He said Bezbaruah was suddenly transferred and appointed as Transport Commissioner in Delhi Government in contravention of Apex Court directive in Jain hawala case to protect investigating officers from the influence of executive, politicians and other extraneous forces.

Meanwhile, Bezbaruah, said he would comment only after studying the order. ``I must see the orders of the Supreme Court as well as the Government before reacting,'' he said.

The Government decision to shift Bezbaruah had come under severe attack from Opposition parties, including the Communist Party of India-Marxist, the Janata Dal and the Dravida Munnetra Kazhagam and even from an ally of the BJP-led Government -- the Trinamool Congress.

All India Anna Dravida Munnetra Kazhagam (AIADMK) supremo Jayalalitha on August 16 had demanded reinstatement of Bezbaruah as ED and alleged that ``persons very close'' to the Prime Minister had been paid ``hefty bribes'' by a media baron for his transfer.

Jayalalitha contended that the transfers, including that of Finance Secretary Montek Singh Ahluwalia, were made without the consent of Minister of State for Finance Kadambur M R Janarthanan, her party nominee in the Ministry.

Government had denied Jayalalitha's allegations as ``unfortunate and baseless'' and said administrative reshuffle in the Government was a normal exercise and that the recent changes had been effected by the Government neither to make anyone a scapegoat nor to appease any quarters.