MOSCOW, December 27 (RAPSI) – The Moscow City Court on Friday lifted an in-absentia arrest order handed down against Sergei Pugachyov, former Russian senator and founder of the bankrupted Mezhprombank.

The judge said that the norms of Criminal Code were violated during the request’s filing, and the appeal court had to return the case on appeal.

Moscow's Basmanny District Court issued an arrest warrant for Pugachyov last Thursday after he was put on a wanted list. Pugachyov is facing misappropriation charges.

Mezhprombank was stripped of its banking license on Oct. 5, 2010 and recognized as bankrupt on November 2010. A criminal case on the charges of premeditated bankruptcy was initiated in 2011. Pugachyov isn’t listed officially as one of the bank’s owners, but he is considered to be the real beneficiary of the bank.

The bank’s problems started in July 2010 after it technically defaulted on EUR 200 million in Eurobonds. The bank also cross-defaulted on a EUR 200 million Eurobond issue maturing in 2013. The Bank of Russia revoked Mezhprombank's license in October 2010.

In 2012, Russia's Deposit Insurance Agency obtained a French court order to seize a castle in France owned by Pugachyov in order to repay debts to depositors of the tycoon’s embattled bank.

In 2010 The Sunday Times placed Pugachyov on the British billionaire list with estimated GBP 750 million worth of assets.