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Ex-bankers sentenced to 4 years imprisonment in Mehta stock market scam

NewsGram Desk

By NewsGram News Desk

A special court on Thursday convicted MS Srinivasan of the State Bank of Saurashtra (SBS) and R Sitaraman of State Bank of India (SBI) over criminal breach of trust and misappropriation of public funds in the 1992 Harshad Mehta stock market scam after observing that the accused persons' acts can be termed as 'anti-national'.

The duo held the post of chief manager of Funds Management Cell (FMC) and bank officer in the securities division of State Bank of India (SBI) respectively. Charges have been out under various sections of the Indian Penal Code (IPC) for criminal breach of trust by a public servant and under the Prevention of Corruption Act for dishonestly and fraudulently misappropriating funds of SBS and SBI.

Srinivasan and Sitaraman are sentenced for four years of rigorous imprisonment and a compensation of Rs 5 crore. The court observed that the duo caused tremendous loss aggregating to several hundreds of crores to SBS and SBI unbefitting their position as public servants responsible to the public exchequer.

"In this case, the complainant, the victim, the accuser is (representing) the country at large. It is the coffers of public financial institutions that have been swept clean," Justice Dalvi said.

"They (Srinivasan and Sitaraman) have degraded themselves by misappropriating public property for illegal and criminal ends, causing enormous monetary loss to the public exchequer. Their acts can well be termed as anti-national as such acts had caused a tremendous economic strain and drain upon the country resulting in the scam of 1992," Justice Dalvi said, adding the accused not only corrupted themselves but corroded the country.

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