Special court convicted Harshad Mehta’s brother Sudhir Mehta and five others in 700 crore fraud


MUMBAI: Twenty-four years after the securities trick broke, an extraordinary court sentenced Harshad Mehta’s sibling Sudhir Mehta and five others, including senior bank authorities and stock specialists, for a situation identifying with swindling of National Housing Bank to the tune of more than Rs 700 crore. The body of evidence against Harshad Mehta, who was one of the prime charged, subsided after his passing in 2002. Equity Shalini Phansalkar-Joshi declined requests for mercy by the denounced, who guaranteed to have languished over more than two decades and had medical issues.

“Beyond any doubt for this situation the offense has occurred, route back in the year 1992. It is likewise genuine that amid this time of 24 years, the denounced people have experienced both physical and mental enduring,” said the judge, however included that the gravity of the offense would likewise must be considered. “(The offense) is of a grave and genuine nature (and) it is of redirecting crores of assets of the nationalized bank, to the record of some third individual, who was not qualified for it, similar to the blamed Harshad Mehta. The nation has seen the repercussions of the said offense as in the economy was completely broken by virtue of this trick,” the judge said.

The court indicted Sudhir and Harshad Mehta’s cousin Deepak Mehta, who was a stock specialist, alongside NHB authorities C Ravikumar and Suresh Babu, SBI officer R Sitaraman and stock intermediary Atul Parekh. The court held them liable under different arrangements of the Indian Penal Code identifying with bamboozling, fraud and criminal break of trust, and under the Prevention of Corruption Act. They have been sentenced to prison terms running from six months to four years. The court additionally forced fines of Rs 11.95 lakh on the charged. Three others, including Hiten Mehta, another of Harshad Mehta’s cousins, who was 19 years of age at the season of the trick, were cleared for the situation. The court has suspended its decision for eight weeks, after the blamed guaranteed that the pinnacle court was going on a winter excursion soon and they would have an intense time to gather cash to pay the fines because of demonetisation impacts.

The 1992 securities trick included officers of NHB, SBI and different banks and budgetary organizations, “wrongfully redirecting crores of assets of the establishments for theoretical returns by systemic and think manhandle of the framework”. In the present case, the indictment’s case was that the denounced “went into a trick with a question carry out a criminal break of trust by misusing the assets of NHB with an expectation to get resources, securities and financial favorable position to the blamed Harshad Mehta with no open intrigue.”

The CBI said that the bank officers exchanged the assets to the records of Mehta, by demonstrating fake exchanges of procurement of securities from SBI by get ready produced reports with the assistance of stock dealers. Ten checks totalling over Rs 700 crore were issued for the exchanges. The charged’s guard was for the most part that they were taking after market hones and had not carried out any wrongdoing.