IL&FS irregularities case: Delhi court dismisses bail plea of Hansprakash

A Delhi court Tuesday dismissed a bail plea of V Hansprakash, an accused in the IL&FS financial irregularities case.

Additional Chief Metropolitan Magistrate Dinesh Kumar rejected the bail plea of Hansprakash, head of business development at IL&FS Securities Services (ISSL), and sent him to judicial custody.

The court put up the matter for further hearing on February 17.

The accused was present in the court.

The Economic Offences Wing (EOW) of the Delhi Police had arrested people associated with Allied Financial Services Ltd (AFSL) for allegedly fraudulently transferring mutual fund units of Dalmia Cement (Bharat) into his account by forging signatures of authorised signatories.

The police said in its charge sheet that ISSL, in violation of rules by the Securities and Exchange Board of India (SEBI) did serious financial irregularities in a transaction with AFSL.

The charge sheet also named Hansprakash as an accused in the case.

The EOW had registered a case last year against a financial company and its representatives and some arrests were also made.

The case was registered on a complaint by the Dalmia group.

The counsel for Hansprakash told the court that police has filed a final report against Hansprakash for the offences under section 420 (cheating), 409 (criminal breach of trust), 467 (forgery of valuable security), 468 (forgery for purpose of cheating), 471 (using as genuine a forged material), 120-B (criminal conspiracy) and 34 (common intention) of the Indian Penal Code (IPC).

The offences punishable under sections 409 and 467 provide a maximum punishment for life imprisonment, the lawyer said.

"Accused cannot be tried for offence under section 409 and 467 as there was no material against him. Accused (Hansprakash) was a mere employee in the company. He was not named in the FIR. There is no material to show that the accused was involved in the offences alleged," the counsel said.

Counsel for the complainant argued that a magistrate cannot grant bail to an accused of an offence punishable with life imprisonment.