Search the Internet          Tips  Sites: Finance, Investment

Hiten Dalal, Acharya get 3-yr RI for cheating Canbank Mutual Fund

A special court on Thursday sentenced stockbroker Hiten Dalal and former general manager of Canbank Mutual Fund B R Acharya to three years' rigorous imprisonment for various offences, including defrauding CBMF of Rs 3.25 million during 1991-92.

Co-accused and former funds manager of CBMF, T Ravi, was however, acquitted by the court which gave him the benefit of doubt.

The verdict was delivered by justice Sarosh Kapadia who stayed his order until October 8 to enable the accused to move the Supreme Court in appeal.

Acharya and Dalal were fined Rs 150,000 and Rs 110,000, respectively, on various counts.

Dalal got three years' RI for four offences under IPC, namely conspiracy (section 120-b), criminal breach of trust (section 409), falsification of accounts (section 477-A) and dishonestly receiving stolen property (section 411).

Acharya was also awarded the same quantum of punishment for each of these offences. In addition, he was sentenced to three years' RI under section 13(1)(d) read with 13 (2) of Prevention of Corruption Act.

However, Dalal and Acharya would have to serve three years' RI in jail because all the sentences would run concurrently.

Dalal is undergoing one year jail term in another case.

He was brought to the court today from central prison to hear the verdict. This is his third conviction in cases relating to the multi-million securities scam.

According to CBI, Dalal conspired with Acharya and Ravi in 1991-92 to obtain pecuniary advantage for himself by causing wrongful loss to CBMF.

On March 9, 1992, he wrote a letter to CBMF claiming brokerage on investment of Rs 650 million in Cancigo although he was not entitled to such commission.

Acharya sanctioned the commission by endorsing the letter and referred the matter to Ravi who prepared a cheque of Rs 3.25 million and deposited in the account of Dalal in Andhra Bank on March 11, 1992, CBI prosecutors V C Gupte and Raja Thakre told the court.

It was the case of the prosecution that Dalal had not acted as a broker in the investment of Rs 650 million in Cancigo and as such was not entitled to brokerage of Rs 3.25 million.

CBI submitted that Rs 650 million investment was made in the names of Andhra Bank (Rs 110 million), Andhra Bank Financial Services Ltd (Rs 220 million), IDBI (Rs 100 million) and Sahara ISICL (Rs 220 million).

CBI alleged that investments of Rs 110 million and Rs 220 million in Andhra Bank and Andhra Bank Financial Services Ltd, respectively, was in fact Dalal's investment as the money was paid by debiting his own account.

He was therefore an 'investor' and not 'broker' and the brokerage was not payable to him, CBI contended.

CBI prosecutors Gupte and Thakre contended that Dalal had not acted as a broker because his name or rubber stamp did not appear on the application form of IDBI or Sahara.

Witnesses from these two institutions also testified that Dalal had not acted as a broker. CBI examined as many 12 witnesses.

YOU MAY ALSO WANT TO READ:
SC dismisses Hiten Dalal's plea
Hiten Dalal surrenders before Bombay court
SC upholds one-year jail term for Hiten Dalal
The Capital Market Crisis

Tell us what you think of this report