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deccanherald.com
Prime-accused in securities scam
Harshad Mehta convicted for misappropriating MUL
funds
DH News Service
MUMBAI, Sept 27
Harshad Mehta, the prime accused in the multi-crore securities scam of 1992, was declared guilty on Monday by the special court headed by Mr Justice M S Rane. 'The Big Bull`` was convicted along with three others on charges of misappropriating funds belonging to Maruti Udyog Ltd (MUL) to the tune of Rs.38.97 crore. On Tuesday, the court will pronounce the sentence for the three convicted after hearing the parties.
The court will give its ruling on Tuesday, the quantum of sentence. The special court, in July last year had ordered a CBI probe into the allegations levelled by the Big Bull that he had allegedly paid huge amounts as donation to the Congress Party managers.
HARSHAD's CHARGE: It is to be recalled that Harshad Mehta had announced in the press conference that he had paid Rs.1 crore to the then Prime Minister Narasimha Rao. Mr Mehta
claimed that he had instructed Mr Mohan Khandelwal, his manager in Delhi to withdraw the amount from the bank for making such payments. Mr Khandelwal, later turned approver in the case. Mr Khandelwal`s deposition against his boss, proved crucial as while convicting the Big Bull and others, the court largely relied upon him.
CBI PROBE: The judge was of the opinion that such a probe was necessary to find out where every single rupee of public money used by the alleged scamster had gone. However, he ruled, that CBI probe would be independent of the outcome in the MUL case.
The court also convicted Mr Manocha for abusing his official position as Deputy Manager (Finance) of MUL. At his behest Harshad misutilised the company funds and invited prosecution under the Prevention of Corruption Act, 1988. The court found Mr Manocha guilty of offence under section 409 IPC for delivering 35 lakh units of Unit Trust of India valued at Rs.4.99 crore to Mr Khandelwal, Harshad`s Attorney, against specific instructions of MUL board of directors.
Besides, Mr Manocha was also found guilty of delivering a cheque for Rs.10.11 crore (drawn by MUL on Canara Bank in favour of ANZ Grindlays Bank) to Mr Anuj Kalia knowing fully well that he was Harshad`s employee. The court also found Mr Manocha guilty of offence under section 409 IPC for representing to MUL that it was UCO bank which wanted to invest Rs.10 crore for a period of five days at 21 per cent interest, thereby inducing MUL to draw a cheque on May 2, 1991 for Rs.10.39 crore in favour of Grindlays bank that was delivered to Harshad`s employee Kalia.
The court convicted Mr Deosthali, the then UCO bank Assistant Manager, for abusing his position as public servant to allow use of MUL funds to be wrongfully gained by Mr Harshad Mehta.
On or about January 23, 1991, he forged a letter and authorised the remittance of Rs.4.99 crore to Bank of America in Delhi by Harshad to MUL. Besides, he authorised delivery of valuable securities of 35 lakh units belonging to UTI to Mohan Khandelwal, approver and attorney of
Harshad Mehta, committing an offence under section 467 IPC.
The court held that Mr Deosthali was guilty of forging the document (purported to be valuable security) to issue bankers receipt dated March 13, 1991, for Rs.10.11 crore with an intent to make MUL believe that UCO bank was holding 70 lakh units of UTI of the face value Rs.7 crore at Rs.14.45 per unit which was meant for delivery to MUL.
The court found him guilty of dishonestly authorising the remittance of MUL funds amounting to Rs.10.11 crore to Grindlays Bank by forging a letter on the letterhead of UCO Bank knowing fully well that it would wrongfully gain Harshad.
Besides, the court found him guilty of forging another UCO bank receipt on March 18, 1991, for Rs.10.84 crore to make MUL believe that the bank was holding 75 lakh units of UTI of face value Rs.7.5 crore which shall be delivered to the company. |
