You are here: Home » PTI Stories » National » News
Business Standard

Harshad Mehta's brother, 5 others convicted in securities scam

Press Trust of India  |  Mumbai 

Sudhir Mehta, brother of the "Big Bull" Harshad Mehta, and 5 others, including senior officials and stock brokers, were convicted by a special here in connection with defrauding of National Housing to the tune of over Rs 700 crore.

The Judgement comes 24 years after the securities scam rocked and other stock exchanges in 1992.



Harshad Mehta was also an accused in this case but the case against him was abated after he passed away in 2002.

Justice Shalini Phansalkar-Joshi, on November 25, convicted Harshad's brother Sudhir Mehta, Harshad's cousin and stock brother Deepak Mehta, the then NHB officials C RaviKumar and Suresh Babu, former officer R Sitaraman and stock brother Parekh.

The convicts were sentenced to jail terms ranging from six months to four years and fined collectively Rs 11.95 lakh after they were found guilty under the for cheating, forgery and criminal breach of trust.

They were also found guilty under the Prevention of Corruption Act.

However, the acquitted three others, including Harshad's cousin Hiten Mehta. The other two are stock brothers Pankaj Shah and Virendra Damani. They were given the benefit of doubt on all the charges faced by them.

The suspended the sentence and fine for eight weeks to enable them approach the Supreme as the convicts pleaded that the apex was already on a winter vacation and in view of the demonetisation situation it would be difficult for them to pay the fines.

In this case, the prosecuting agency, CBI, argued that the accused had entered into conspiracy with an object to commit a criminal breach of by misappropriating funds of National Housing with an intention to obtain valuables, securities and pecuniary advantage to accused Harshad Mehta without any public interest.

The CBI alleged that the officers had transferred the funds to Mehta's account by showing fake transactions of purchase of securities from by preparing forged documents with the help of stock brokers.

Ten cheques amounting to Rs 700 crore were issued for these transactions, it said.

The accused, however, had pleaded that they were following market practise and had not committed any criminal offence.
Between November 1991 and April 1992, C Ravikumar and

issued 10 cheques for above Rs 700 crore in favour of State of India in respect of ready-forward transactions, the CBI told the court.

"This was done without obtaining the sale memos, securities or receipts from the kingpin of scam Harshad Mehta who had acted as a broker of SBI," CBI argued.

Convicting the accused, the Judge said, "it is true that in this case the offence has taken place, way back in 1992. It is also true that during this period of 24 years, the accused have undergone both physical and mental suffering."

"However, the gravity of the offence would also have to be considered. (The offence) is of grave and serious nature (and) it is siphoning of crores of rupees of a nationalised to the account of some third person who was not entitled to it, like the accused Harshad Mehta," said the Judge.

"The country has witnessed the repercussions of the said offence in the sense that the economy was totally shattered on account of this scam," Justice Joshi said in her Judgement.

RECOMMENDED FOR YOU

Harshad Mehta's brother, 5 others convicted in securities scam

Sudhir Mehta, brother of the "Big Bull" Harshad Mehta, and 5 others, including senior bank officials and stock brokers, were convicted by a special court here in connection with defrauding of National Housing Bank to the tune of over Rs 700 crore. The Judgement comes 24 years after the securities scam rocked BSE and other stock exchanges in 1992. Harshad Mehta was also an accused in this case but the case against him was abated after he passed away in 2002. Justice Shalini Phansalkar-Joshi, on November 25, convicted Harshad's brother Sudhir Mehta, Harshad's cousin and stock brother Deepak Mehta, the then NHB officials C RaviKumar and Suresh Babu, former SBI officer R Sitaraman and stock brother Atul Parekh. The convicts were sentenced to jail terms ranging from six months to four years and fined collectively Rs 11.95 lakh after they were found guilty under the Indian Penal Code for cheating, forgery and criminal breach of trust. They were also found guilty under the Prevention of Sudhir Mehta, brother of the "Big Bull" Harshad Mehta, and 5 others, including senior officials and stock brokers, were convicted by a special here in connection with defrauding of National Housing to the tune of over Rs 700 crore.

The Judgement comes 24 years after the securities scam rocked and other stock exchanges in 1992.

Harshad Mehta was also an accused in this case but the case against him was abated after he passed away in 2002.

Justice Shalini Phansalkar-Joshi, on November 25, convicted Harshad's brother Sudhir Mehta, Harshad's cousin and stock brother Deepak Mehta, the then NHB officials C RaviKumar and Suresh Babu, former officer R Sitaraman and stock brother Parekh.

The convicts were sentenced to jail terms ranging from six months to four years and fined collectively Rs 11.95 lakh after they were found guilty under the for cheating, forgery and criminal breach of trust.

They were also found guilty under the Prevention of Corruption Act.

However, the acquitted three others, including Harshad's cousin Hiten Mehta. The other two are stock brothers Pankaj Shah and Virendra Damani. They were given the benefit of doubt on all the charges faced by them.

The suspended the sentence and fine for eight weeks to enable them approach the Supreme as the convicts pleaded that the apex was already on a winter vacation and in view of the demonetisation situation it would be difficult for them to pay the fines.

In this case, the prosecuting agency, CBI, argued that the accused had entered into conspiracy with an object to commit a criminal breach of by misappropriating funds of National Housing with an intention to obtain valuables, securities and pecuniary advantage to accused Harshad Mehta without any public interest.

The CBI alleged that the officers had transferred the funds to Mehta's account by showing fake transactions of purchase of securities from by preparing forged documents with the help of stock brokers.

Ten cheques amounting to Rs 700 crore were issued for these transactions, it said.

The accused, however, had pleaded that they were following market practise and had not committed any criminal offence.
Between November 1991 and April 1992, C Ravikumar and

issued 10 cheques for above Rs 700 crore in favour of State of India in respect of ready-forward transactions, the CBI told the court.

"This was done without obtaining the sale memos, securities or receipts from the kingpin of scam Harshad Mehta who had acted as a broker of SBI," CBI argued.

Convicting the accused, the Judge said, "it is true that in this case the offence has taken place, way back in 1992. It is also true that during this period of 24 years, the accused have undergone both physical and mental suffering."

"However, the gravity of the offence would also have to be considered. (The offence) is of grave and serious nature (and) it is siphoning of crores of rupees of a nationalised to the account of some third person who was not entitled to it, like the accused Harshad Mehta," said the Judge.

"The country has witnessed the repercussions of the said offence in the sense that the economy was totally shattered on account of this scam," Justice Joshi said in her Judgement.
image
Business Standard
177 22

Harshad Mehta's brother, 5 others convicted in securities scam

Sudhir Mehta, brother of the "Big Bull" Harshad Mehta, and 5 others, including senior officials and stock brokers, were convicted by a special here in connection with defrauding of National Housing to the tune of over Rs 700 crore.

The Judgement comes 24 years after the securities scam rocked and other stock exchanges in 1992.

Harshad Mehta was also an accused in this case but the case against him was abated after he passed away in 2002.

Justice Shalini Phansalkar-Joshi, on November 25, convicted Harshad's brother Sudhir Mehta, Harshad's cousin and stock brother Deepak Mehta, the then NHB officials C RaviKumar and Suresh Babu, former officer R Sitaraman and stock brother Parekh.

The convicts were sentenced to jail terms ranging from six months to four years and fined collectively Rs 11.95 lakh after they were found guilty under the for cheating, forgery and criminal breach of trust.

They were also found guilty under the Prevention of Corruption Act.

However, the acquitted three others, including Harshad's cousin Hiten Mehta. The other two are stock brothers Pankaj Shah and Virendra Damani. They were given the benefit of doubt on all the charges faced by them.

The suspended the sentence and fine for eight weeks to enable them approach the Supreme as the convicts pleaded that the apex was already on a winter vacation and in view of the demonetisation situation it would be difficult for them to pay the fines.

In this case, the prosecuting agency, CBI, argued that the accused had entered into conspiracy with an object to commit a criminal breach of by misappropriating funds of National Housing with an intention to obtain valuables, securities and pecuniary advantage to accused Harshad Mehta without any public interest.

The CBI alleged that the officers had transferred the funds to Mehta's account by showing fake transactions of purchase of securities from by preparing forged documents with the help of stock brokers.

Ten cheques amounting to Rs 700 crore were issued for these transactions, it said.

The accused, however, had pleaded that they were following market practise and had not committed any criminal offence.
Between November 1991 and April 1992, C Ravikumar and

issued 10 cheques for above Rs 700 crore in favour of State of India in respect of ready-forward transactions, the CBI told the court.

"This was done without obtaining the sale memos, securities or receipts from the kingpin of scam Harshad Mehta who had acted as a broker of SBI," CBI argued.

Convicting the accused, the Judge said, "it is true that in this case the offence has taken place, way back in 1992. It is also true that during this period of 24 years, the accused have undergone both physical and mental suffering."

"However, the gravity of the offence would also have to be considered. (The offence) is of grave and serious nature (and) it is siphoning of crores of rupees of a nationalised to the account of some third person who was not entitled to it, like the accused Harshad Mehta," said the Judge.

"The country has witnessed the repercussions of the said offence in the sense that the economy was totally shattered on account of this scam," Justice Joshi said in her Judgement.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard