Case Note & Summary
This criminal case arises from the 1992 securities scam, which severely impacted India's economy. The prosecution alleged that multiple accused persons, including bank officials and a broker, conspired to cheat SBI Capital Markets Ltd. (SBI Caps) of Rs.105.11 crores through fraudulent purchase and sale transactions of securities between 1991 and 1992. The charges included criminal conspiracy under Section 120B IPC, cheating under Section 420 IPC, criminal breach of trust under Section 409 IPC, forgery under Sections 467 and 471 IPC, falsification of accounts under Section 477A IPC, and abetment under Section 109 IPC. Public servants among them were also charged under Section 13(1)(c)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988. The case was investigated by CBI, which filed a charge-sheet on 12 October 1993 against twelve accused, later supplemented on 5 April 1999 to include five more, with a merged charge-sheet dated 20 September 1999. Accused No.2 Harshad Mehta, the main figure in the scam, died during trial, leading to abatement of proceedings against him. Several other accused were discharged at various stages. As of the judgment, the case stood against Accused Nos. 1, 3, 4, 5, 8, 12, 15, 16, and 17. The proceedings were conducted before the Special Court at Bombay constituted under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.
Issue of Consideration
SPECIAL CASE NO.4 OF 1993
Case Details
2018 LawText (BOM) (11) 22
Special Case No. 4 of 1993
Dr. Justice Shalini Phansalkar-Joshi
R.S. Mhamane (Special P.P.), R. Sitaraman (in-person), P.G. Sabnis, D.U. Mirajkar, Sachin Joshi, Vivek Sharma, S. Suresh Babu (in-person), R. Satyanarayanan, Prashant Sawardekar
Central Bureau of Investigation, Mumbai
Rama Subramanian Sitaraman, Harshad Mehta, Coodli Ravi Kumar, Ashok Agarwal, Janardan Bandopadhyay, Mayuram Subramanian Srinivasan, Hiten Bhupatrai Mehta, Ashwin Shantilal Mehta, Sudhir Shantilal Mehta, Pankaj Vrajlal Shah, Atul Manubhai Parekh, Seetapathy Suresh Babu, Kalimuthu Kailasam, Arun Narendra Bavdekar, Shyamsunder Ramlal Gupta, Bhushan Damodar Raut, P. Murlidharan
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Nature of Litigation
Criminal prosecution for offences related to a securities scam involving allegations of criminal conspiracy, cheating, forgery, and corruption against bank officials and brokers.
Remedy Sought
Prosecution and conviction of the accused persons under various sections of IPC and Prevention of Corruption Act.
Filing Reason
Alleged cheating of SBI Caps of Rs.105.11 crores through fraudulent securities transactions during 1991-92.
Judgment Excerpts
This Special Case is a fall out of the security scam, that rocked the nation in the year 1992 and shattered its economy for the years to come. Accused No.2 Harshad S. Mehta, who is no more and in whose name the scam came to be known, is one of the main Accused in this case.
the accused persons have in pursuance of the criminal conspiracy hatched by them, cheated SBI Caps to the tune of Rs.105.11 crores in 'sale and purchase transactions of securities' during the year 1991-92
in all these 24 transactions, while the account of SBI Caps, Mumbai, maintained in the State Bank of India, Mumbai Main Branch was debited, neither the physical securities nor the Bank Receipts were credited into its account.
Thus, as on today, the case stands against Accused No.1 R. Sitaraman, Accused No.3 Coodli Ravi Kumar, Accused No.4 Ashok Agarwal, Accused No.5 Janardan Bandopadhyay, Accused No.8 Ashwin S. Mehta, Accused No.12 Seetapathy Suresh Babu, Accused
Procedural History
Complaint lodged by Accused No.5 Janardan Bandopadhyay on behalf of SBI Capital Markets. Crime registered against Accused 1, 2, 3. Investigation by CBI. Charge-sheet filed on 12/10/1993 against 12 accused. Further investigation led to supplementary charge-sheet on 05/04/1999 against 5 more accused. Both charge-sheets merged into common charge-sheet on 20/09/1999. Accused No.2 Harshad Mehta died on 31/12/2001; case against him abated on 17/01/2002. Accused 6, 13, 14 discharged on 13/02/2015, 11/06/2015, 17/08/2015 respectively. Accused 7, 9, 10, 11 discharged on 23/02/2017. Case proceeded against remaining accused.
Acts & Sections
- Indian Penal Code, 1860: 120B, 420, 409, 467, 471, 477A, 109
- Prevention of Corruption Act, 1988: 13(2), 13(1)(c)(d)
- Code of Criminal Procedure, 1973: 173(8)
- Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992:
