4 convicted for 3.6cr bank fraud in 2007-09

Mumbai: Holding that financial frauds "undermine the economic fabric of society and public confidence" as well as the life and liberty of citizens and a strict yardstick must, therefore, be used for them, a special CBI/ACB court on Wednesday convicted four persons over a Rs 3.6-crore fraud from 2007-09 involving Bank of India's Nariman Point branch. Two are 78 and 76 and were shown leniency in sentencing owing to their age and circumstances.The convicts colluded and secured letters of credit (LCs) by using forged documents. Seven others were acquitted due to lack of evidence. The case against another suspect was abated after his death. All accused were out on bail. Special judge Amit V Kharkar gave five years of rigorous imprisonment (RI) to the fraud's primary beneficiaries—Harit Mehta (40), proprietor of Infinite Transmission, and his father, Abhay Mehta (73), who served as its director. Harit was fined Rs 3.5 crore and Abhay Rs 1 crore. The firm was also convicted for cheating and forgery. The court pointed to the internal collusion that made the fraud possible. Manoj Kumar Mathur (78), then senior manager in the forex department of the bank, was convicted for dishonestly discounting and adjusting the LCs without the required approval of the competent authorities. Similarly, Ilesh Shah (67), a retired consultant and proprietor of RIJD Associates, was convicted. Both were sentenced to three years of RI and fined Rs 50,000 each. Showing leniency in their sentencing, the judge noted that Shah was a guarantor and had already paid Rs 20 lakh as per an earlier court order and his house was also attached by the debt recovery tribunal. The judge said Mathur was dismissed from service long ago and had had a leg amputation. Special public prosecutor Jitendra Kumar Sharma cited 32 witnesses' evidence. The case was filed by CBI's economic offences wing, Mumbai, in 2010. It pertains to the discounting of a forged bill of exchange purportedly issued by HDFC Bank on Mathur's recommendation. Of the discounted amount, some was deducted by him and in violation of the rules, he credited the amount satisfaction of another LC. The remaining discounted amount was credited to the account of the accused, from which it was siphoned off to other conspirators' accounts. The LCs were purportedly issued in favour of Infinite Transmission, shown to be opened in the account of Jayant Agro Organic. According to the prosecution, Mathur adjusted Rs 95 lakh against the dues of Infinite Transmission, whereas the LC was issued for a different purpose.