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

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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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The CBI Arrests Two Senior Retired Officers Of Bank Of India

The agency in an FIR had said that the DPIL, which manufactures electric cables and

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The CBI Arrests Two Senior Retired Officers Of Bank Of India: Bank Of India Fraud
The CBI Arrests Two Senior Retired Officers Of Bank Of India: Bank Of India Fraud. IANS

The CBI today arrested two senior retired officers of Bank of India in connection with alleged loan fraud of Rs 2,654 crore by Vadodara-based Diamond Power Infrastructure Ltd. (DPIL) in the bank. V V Agnihotri and P K Shrivastava, retired GM and DGM respectively, had allegedly granted undue favours to the company in granting credit limits, the officials said.

They said both have been arrested today and will be produced before special court in Ahmedabad tomorrow.The promoters of the company were arrested in April this year. The agency in an FIR had said that the DPIL, which manufactures electric cables and equipment, is promoted by Suresh Narain Bhatnagar and his sons Amit and Sumit, who are also the directors of the firm.

Bank of India
Bank of India. Flickr

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The loan, it said, was declared a non-performing asset in 2016-17. “It is alleged that the DPIL, through its management, fraudulently availed credit facilities from a consortium of 11 banks (both public and private) since 2008, leaving behind an outstanding debit of Rs 2,654.40 crore as of June 29, 2016,” the agency had said. (IANS)