Securities scam: Court discharges 3

Three persons were discharged by the special court hearing the case of the securities scam related to late Harshad Mehta in the 1990s.

Three persons were discharged by the special court hearing the case of the securities scam related to late Harshad Mehta in the 1990s.

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Justice VM Kanade recently discharged Kishore Amerchand, BPD Pai and Kadiyoor Bhandarkar in a case lodged by the Central Bureau of investigation (CBI) on June 2, 1993.

However, the CBI filed the charge sheet only in October 1998, after a delay of five years alleging that the trio had conspired to cheat Syndicate Bank to the tune of Rs 23.21 crore by undertaking four fraudulent transactions in spot purchase of securities, namely 13% MTNL bonds and 9% PFC bonds.

According to the CBI, the three men had issued various pay orders drawn on Syndicate Bank in favour of Corporation Bank by making representation that the pay order was issued for spot purchase of 13% MTNL bonds and 9% PFC bonds.

Ajay Panicker, advocate for Amerchand, said there was no material against his client. “Amerchand, who is now 75, has been rightly discharged by the court for lack of evidence,” Panicker said.

Justice Kanade observed: “It cannot be said there was any material to show that conspiracy to commit an offence or to cause loss to either public sector undertakings who had invested funds in the banks. I am of the view that no case has been made out by the prosecution.”

The court refused to stay its order on request of the CBI to allow them to approach the Supreme Court.