ketan parekh 1992 stock scam judgement special court mumbai

8/9/2019 Ketan Parekh 1992 Stock Scam Judgement Special Court Mumbai

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1

BEFORE TH SPCIA CO A BOMBAY

CONSITED UNDE TH SPECA COUT (TIAL OF OFFENCES

REAING TO RASAIONS N SECURIES) A 1992

SECAL CASE NO 3 OF 196

Cen ueu f nveigon .. Coml

V/

Sath Mhn Aced No.

N auma ....Acce No.2.

3 B.. Achy Ace No

4 M P.J Sbbr Accued N..

5. Hiten P ll Accued N5

6 SK he Acued N

7 P Set Acue No7

8. MK Aho Km ... Acced N.8

9. Ktn V Pekh Aced No9

0 Nvcad N Peh ... Acse N10

V Snv ... Aue No

M V. P . S. Mhmn, Spal b Petof CBI


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Mr A.Z Mooh dv g Ad o usd No.1.

M Gh Ku, dv ud N2

Mrs BA. d (l A), dv r usd No.3.

Mr P. wd, dv or d No.4.

Mr. ul Kl dvot r d o.5

Mr. aih h M M dh Dru Lldr & Cdv or d No6

Mr Pdhr Mr v Sh & R Rpdvot or usd No7.

M Mr Ait i

My Sr Mdhur M&

Co, dv o N8

Mr. Mhh J Mr A Chu & Mr Ajt Kdd c 9 d 10

M D.R do L Aid or csd o.

OAM: VM. KAADE Jd Sp out

DAT : 7 Mrh 20 & Aprl, 208


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3

O DGME:

n 0/06/1994, a complan cme o be eed e Bank

Secue d Frud Cel of Cnrl Bureau of Ivegton ide RC.

No3/BSC/94-BM ude secon 2-B ad w eco 49 42

477-A of e ndn Pel Cod d econ 13() ad w eco

3()d) of he Peveo of Corrupo Ac 988 e R i wa

ed eable omo eceed e ice o e eec

Cnbak Fcal Sercs Lmed which had Headqur

a Bagoe ad wch w a wholy owned bsday of C

B, d ppaed e secoda mak aces was

aged

he FIR a durg 9992 S Moh Accused No)

Mr N Bubmam Accused No.2) were poed a

Vce ede e Ca Headue a Boe nd M.

S Mohn dele d N Baaubmam wa loog e

Fund geme Depe It wa aleed e wa a

coprcy bewee employee o Ca ad Canak Muual Fud

d some boe ad wa aeed eween hem e nd

bogig o Cana ad Caak Muual Fud would be dveed n

he ccou of he broke ad heee e d mou whch wa

deed woud eued w e ad o he d pupoe


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4

e aount of Cna and Canb Mutual Fund wee mapuaed

Te deta of e sad tnsation wee mentoned te Aer

e IR odged, acced No. 7 M Se w eed on

07 /07 /1994 and eed on bai on 09/07 /199 On

25/03/1996 ote accued were asd and we eleaed on bl.

Cge-heet was ed as e accsed n cag-eet wa

leged a te aued comtted n oence puabe unde

setion 120-B ead wt cton 09 420 77-A of e ndn Pen

Code and 3(2) ad wth cton 131)d of te evenon o

Coupon At. Ae te age-seet was led a cage w med

agait te aused e poeuo exmined 19 wee

suppot of is se.

2 e posecuon bie ta a ount of R

477068200/ w tsmtted e stlment om Cana to

Canbak Mut und oay oteby o pe of

ces by bak fo aa e ton ook ace on

0/10/99 and te ount oved tsacton wa 1729

oes. e cond acon tk pace on 22/0/1991 and wa

or e amount f R 12 coe e td traacton took pce on

6/01/1992 and an amont of 5 r. e fourt


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5

ctin w inid on 07/02/992 nd w alo o a mount

ofR 5 os T 5 aon was ated 11/2/1992 d w f

a amont o croe

3. Dung ose of uent M. V.G Pradan he eed

Speca Pubc osto ppeag o beh f e poseco

tted tat t proeuon id no wsh t pess rges e

of te sacto dated /2/1992 ad /02/992 i.e aon

No. ad 5 sce it wa eenly a ason wich w n espect

f te accused Manubha Mal who hd xped durng he

peneny of the l

4 I te case o te psecuion ht s s th rsttson

s nnd dad 10/10/99 e d to the ne of R 729

ores wee diveed vor of accused No 9 d 1 and accused

N. tgh the B of Indi In espect of te seond taction,

wch ws f aont of R 2 crors, nds we dveed

vo accd Nos.6 an tou te Bk o Inda and

repct of th rd ntion dated 6/01/992 te funds to te

une o R 5 ores wer divrted fvo o aed N.5 hrough

e Ad ak nd n spct of the our and ft aon, t


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6

nds were divered favour of ate Mabha Maka.

5 Te posecto as examed 9 weses i order to etabh

t ee ds ee dveed om Caa nd eveay these

ds laded n te ad of ased/broker, wo ied e sae

ad ereaer moe ame o be refded o Cn ogwith

ees

6. I s esseta to brefy se e aios whh voved

ptua se. t eged by th proseto t S Moa -

asd No.1 made a e dted 10//99 Cn's boo

egadg prcae of om Canank Mta Fd for R 79

oes he tere o de eee C d CB. Een

the absee of y dea a aon of 729 s was

red to CBo lO/f91 y f Bgaore. Oit 1;

ee o e ad o ocher dated0/10/1991

preped

CM o sow at e aid o wrgy eeve d t

t was o pd bak de ose of e t eged that

reat amot not reded o nn bt B A -

ed No3 aog wt BV. Srvsa accsed No. seqe dated 10/10/991 of R 899 ores vor o SK Jave


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7

accued No6 and e ceqe r 830 coes vo of M

Narbhaam Hakcnd, wc wa wic Ke V. Pek

and Nvncand N arek e ed No 9 ad repecvely

we sote Teeer, i mon of R 7.29 core w

egay paed on o e ad boker wo dd o e y da

eer w Cn or w CBMF coecon wi te rept o e

ad amon

er aeged ha teance of e afored mn

copiay N Baamm - cced No2 mde n ey daed

2/0/ n e Cann record egarding pe of "1 NCD"

for 2 ore om Cnbk M Fd whie Cana dd o

ave ny c de wi CBM I s aleged a even en U

amo o 1 oe w aed o anbk M d

Mmba y Cn Bngore on 22091 On eceip of e

n n CBMF, oer w pepaed owing d receip of

R crore a wongy remted" om Cana wh beng pad

o SK Jver a per Cnna' co and acdngy n

amon o 2 e ceved n CBMF m a wo any

dea w paed on o SK Jve cced No6 wo dd o hae

n deal eer w Cna o w CBMF in conneion w e


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8

ecept f th a amun

8 It aleged by te preun at N. Balbmam

acced N.2 mad an entry dated 6/0/992 n Caa' recd

egdng purchae f f NCD m Canak u Fnd fr

n munt R 5 ce g na did nt have ny uch dea

wt Canbank tal Fund (hereer ed '). It

eged ftr amn wa reived accued No.4 J

Subbar ued dc t Caa Bk Tama Lne Banch

Bmay t edt mn i ig Seme", gh F wa

n cnected n y wh sad mnt It s leged at er

amn a edtd i e Caig Sme t wa nred to

te accunt f Hiten l acued N5 wh did nt ae any

dea r M rpect f eipt f e ad amn f

R 5 cre It e petn ta N Balbmam

accused N.2 mad n entr daed 07/02/992 regardng uca f 4% N fr R 5 e m CBM thgh her w

n h dl eiter m Cna r CBM n amnt w

aed t CBM n te a f he aid enty er amt

ws riv CBF acued N4 sued a ceque ate

/2/992 in favur f lte anubi anikal tgh e dd nt


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have ay del eihe it Canna or i CBMF

9. I e psecution ase t simlrly, ccused No.2 N

Balsbniam made eny dated 1/02/1992 i Ca's reord

song prhase of 1 NCDs for R 7 ores om M houg

Cn did not hae deal d amont was ferred

to M for the prse of NCDs. Wen amont s redited ine aont of M acued No J Sbbrao alongh noer

Ofe ied ee dted 1/02/992 i vor of Mbha

ho, agin, did not ve ny deal th Caa o wth

M. The prosecion case, r h n mont of R

537782500/ received om s YB. Desa on 31/03/1992 nd

mont ws rsfed on 31/03/992 by Ca, Mmbi to

C Bangalore hrogh n IBA whi wa signed by M

Vop who ws not made n csed n te l t i he

poseution se t by e of ese ve cio n mont f

R 47706200/ was uzed by ebrokers and agin remitted ba

wh nteres The mont of 537782500/ as aferred on

31/03/992 by Ca, Mmb to Cann, Bnglore. hs

done by an BA signed by R Venugopal and afte amon ws

eeved by Cn Banlore, ccsed No.2 N Blbrmanam


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ecuiy. I howeve pohibe Canna om doing be of

bng a dene n e Baking Relaon A e Canbak

ul Fund s a us and i auhozed o mke nvesmens in

he a alo o lend money nd make advances. aue 15 of

Deed empowered he uee of he CBF o ) acqie old,

manage ade and dipose o shaes and debentes & ) boow o

oew se money w o wtho seie subje o he lms

a my be decided by te ee A he elea e ccsed No1

- S ohn wa e Aisn Vice Pesiden nd deale of nna a

Headqr n Banalor, accse No. - N. Balsbamnm

he Assisn Vice Pesiden and he dele of a s

eadu a Bangaloe ased No.3 - BR Achrya ws he

Gne nge a membe of the Boa of ruees of CBF

ccused No PJ Subbao he Ain nea aag,

Canbak ul n, Bombay ased No5 ien P. Daal wa

sha/ock & nce bke accsd No.6 S. vei a

sha/sock bke, acued No7 Palav Se wa ae/ock bk,

aued No8 K Aok Kma a e elevan me wa e ssisn

c Peiden of Cana Bagao au No. 9 - e V Pakh

wa alo ha/ok boke aed No10 Nananda N Pak

w so a ha/ock bke and ue No1 BV Sn s


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Javei, Paa Seh and Manbi Maa who were stck brker

m Bmba t dier nd m te thee Fnncial Ittn

our f e brker and t ceate a recrd on te bai f

mirepeenatin t and aon of doument t

dcate tat e C paced nd wth Cnbak Muta Fund

fr he pucse f nn-cnebe debenture but, aua rea,

n uc acn o purch f nn-nete debeture hadactuay taken pce nd n t manner nd t te tune f R

7706800/- were llega paed n e and f ke. The

pecutn e i, ereore, tht the accued eo dung te

pe m Otber, 1991 t Apr 19 n rde to defud he

Canbank nancal eie Lmted at Bagae f e ad amun,

forged rius dcument and made e read fard dea f RI

and 14 NCD secure wi CBMF at Mumba and eeb

derted nd of Cna at Bagaore to Mumba and theeae

dierted of Cana at Bangare t CBM at Ma o at he

aoun cod be deed f e e f aued N 5 6 7, 9 and 1

and, hereafter gn fse and ci enie w made o make it

appear tat he aid dea we reered

15 e peutn a examied 19 winee .W 1 M


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1

V S Hegde who ws worng a Seey n Cnbnk Mutual

Fnd at te relevant me Se sated her eence t, as a

Seey he work o pepae vouhers and oter nd rela

wor. The second itness examned y he posection ie P2

M B N Sna He was wo a a robatonay Seta

Canna a e relevant me P. 3 s one Mrs Shaa Mahar

Dghe wo w workng a an mployee of e Bank o Amea a terelevan me P. 4 Mr Ajay Kmar Nagendna Kr He was

worng a Taman Ban of a Ba as an Oer . 5 s

one Mr Jaguml Randa Na He ws a e eevan me

worg ana as Asst ede om Noembe 199

He has rough on reord cles o Assocton o ana P.6

M Aok Kumar He was worg as or Ve Peden

Caa d he on deputation om Cana Ba P 7 Mr M.

apa o ws worng he Caak Mtual Fun a e rele

e He sted ta one M suza he head o e

Depamen when he was worg i . P. 8 s ab ay

who wa a eevan me wrng n e Aons ep ent o

Bn o Amea PW9 s i Tuml He a te reeat

e worng B PW 10 Mr. i amondas

Ummegaonwala was worg a e relevan me a he So


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15

Exchnge Bnch Bk nda He stated tat at te releant

e he s hdg the accout of s arherm Harakcad

P.W s M ie Maadeo Agaokar d, at he reen me,

he wrkg Sk Exhage Branch of Bak of Inda betwee

o 8 PW. 2 M. Vsath mr Damarau ad he was

wrkg wih te Andr Bak, Fo Brach an Ofcer dung te

elevnt erid PW 3 Mr Omprakh uka He was wrkn

Cn bewee 8 and 84 s a ecty ad he was

postd Bombay at tht me PW4 Mr si t He

was e Cama and Mn ecor o a PW 5 is Mr.

Gur ma h, wh w wk e Eute

Ofcr of Cabnk Muul Fnd t Bmbay PW ne Mr .R.

mra nd e he Canba Mutal und, Mmba P.W 17

s Mr. Ygesh amsh Bmbadek He w wih he

Bombay ock Excge a he relevn tme P.W 8 Mesh sh

he Acouns Assat wth s Nabhem Hrakan.P.W

e Ivesgatg Oe Sa Shank ha so f Sde

Ae he se was iy estered by M Ar ank e

e SP the vesio o the se late o hded er t

and e cordd e evidence s wtnees H o szd

te docmes ad record nder seize memo cept mem


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h accused pledd not giy o t g h w

med by his C.

7 The poi fo deriio s dr:-

POS

(1) h poseio h povd

yod ol do e

h eiod Oo 99 ad Aprl 992

i Mmi d Bglore, d

nered io il npr it

oj of done pog of

uds of Cn o h n o R

782/-?

2 W is pod y t

proseio yod resole do

t, i h of nl

onspy of dosly sipong o of

ds of t o u of

7,782/- d oiy nd

y decided o x t gs

io nd nonxin dy fowd

so dd //199

2/991 /1/992 of ei

seis ih vgy nd

dpivly dd s o w L" d

FIG

Y aed Nos.2 11.

Yes, ased 2


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17

" NCD r te purpose of o

tat Caa d sod/prcased te aid

secries o/rm e Cnb MulFd CBMF a Mumba ad by us

deve divered e oesaid d o

e oresaid daes nd cimially

msapprpred e proeeds eeo and

dverted e d i te respe

acouns acsed Ns. 5 7 9 and and oder to coceal te sid nttion

maiplaed and reaed se ad

tos docume ad so made enies

e deae pads secuiy toc rter

redidebi oces ier-b advses

B d tereby ommed n oecepusable unde scon 20-B o e

d el Code d/or ecn 34

andor 09 ad i scio 03

, nd 77 e Idian Penal ode

read i ectio 3c read t

seon 3( o te eventio

Cpon Act?

(3 Weer i is proved by e

pseuio beyod reasoble doub

e accusd No s te sssat Vce

esiden nd empoered del in

sae and pase o seures by ad


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18

e of Ca o te exen of 0

la ad tat he ad wt doe

neno wle wongfly dpog oe nd o te Cafna exeeded he

power delegaed o and made

to ad onesen nao

voling purhse of 12900000/

of a so lled Sey "L wh CM

and erey ommited te enepnhle under eton 3(1)( ead

wh eon 132) of e Peeno o

Copon At?

(4 Wheer e proeon pved

yond reaonable dout t e aedNo1 d puua to e onpy o

energ o ready forrd naio

nvolving R 1729 oe o e Seiy

RL w he C ed Jner ak

Adve ]A) No32100 dated 10/0/91

for

000000/-ad

No32107 for

R 9900000/- vourng CM wtout

aaly reeg ay mem r

oe or euity i pyi or n e frm

of a eep om CM and eby

ommited oene puhale nde

eton 13)) ad w eon 12)

o e Peveno of Coupon A

YS


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19

(5) Wheer, it L poved by he

psecutn beyod eaable dub e ued N.1 ped mtng

the aut f 729 oe o

oenbly f te pe f ale ad

puh f secue hough h wa

de wthou y nse ad

heeby ed an oee puhbeude et 409 o the Id Pe

Ce?

( Whehe he poeuo ped

eyond eable dubt at te ued

No1 wh an tenton o deaud faed he bk/pape

belngg to y kg a ae

enty egad at vovng

729 o d ted a oence

pbe de 477A he

ndan Pel Cde

(7) ehe e ec ha poved

beyd easble doubt ht e ued

No2 exeeded pwer wee

delegated to t de le ad

pue o eue on behalf of

d enteed o n-eet

S

S

O


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20

cion involving puce f 12

ror o ed suty "14% NCD"

wi nd cmmed n onpunhbe unde ection 3()() ed

i con 2 of he Pevntn of

Copn At?

(8 Whhr it i proved by t

poeuon beyod b dbt ht accued N.1 w nued he

d C ying wih he Cr

Ba's brnch at Cunigham Rd,

Bangor ad tht hehs, in violon of

h trs of trustmen, enteed ino a

on-exstent aaco nvlving aamn o R 2 t Sey

"140 NCD" with CM nd asferd

n mun f 2 o by mkg

enty n A Rgt ving

wht ny oidetion nd cmmied

n pub und 9 f

he Indin Pnl Cd

(9) Weth prd y

pocuion beyond eb dut tht

the cced o2 id h boo f

cnt/dum belngng t C

by mkng e e egding he


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21

aacton nvolvg 12 rore s ad

ommted n oene puihbe der

econ 4-A of the In Pe ode?

( O) eher it s proved y the

psecon eyod resoe dot tht

te acsed No.2 exceeded he wer

delegaed o e sae and prchase

of sece and abed oce ypeendg to eter m dea pad a

Bangaloe co ad non-estet

scton vovg phse o R

res o 4% D" he CBM ad

eey ommted a oence pshe

nde econ (c) read eton3() of the eveto of Coto Ac

Wheher t poved y the

poseon eyod asoae dot h

the aced No, who wa etted wth

e d o he Ca hee o

he Copay made a og anacon

vovg a amo of 5 roe o e

Secy "4 NCD h he CBM ad

sfered the d amont n avo o

te M t any codeaton d

eey commtted a oece habe

nde econ 409 o he Idi Pen

NO

YS


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2

Code.?

(12) Whr i povd by hposcuion byod raonabl doub at

h ad No.2 fld

ook/doms blogng o Caa

iolig aco of 5 co d

ommd oc phbl dr

tio 477A of Ida Pl Cod

3 Whr rod by h

osuo yod h aoab dob

aud No2 xdd

ahor dlgad by C

by i g o ciio and o-ansa of 5 or d commd

a oc pab d o

3( ad w co 132 of

o of Coio A

(14) Wheer iti

proved by eoio byod raoab doub a

accd N2 ac of

spracy mmitted an ofenc

ubl dr io 9 of d

PenalCode.

NO

O

O


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23

(15) Wheer i roved by e

proeuton beyond aonble dob ahe aced No. made fae en he

ook nd domen o he Caa n

eet o he aon o R rore

nd ommed an oee hae

uder eon 47A of he Indin Pe

Code?

( 16 Wher i oved y he

oeion eyond esone dob ha

e ed o re of he

cay m ee of o

aon of rhe o R 7 roe o a "4% CO", aed oe

ad ommed oene abe

nder eon 11) red w eco

of he Prevenon of oon A

(1) Wheher i

roved by e

roeon beyond reanb dob h

he ed o ee o he

osay ommied n oene

hbe nder eon 49 o he Indn

Pe de ree of e o-ed

o raon of R 7 rore

O

O

O


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24

8) hethe poed b

posetion beyond easabe dobt atthe acsed No2 mde ctiious ey

he oos o aots d othe

dcents of a regrdg

aston o ores nd oitd

oece pable nde cion 477A

o he Indn eal ode?

(19) ehe t poed by he

posection beyod asobe doubt ta

te aued No2, heae of

cospac, exeded poers delegated to

nd peended o ente to eadyord R asactio nolvg

ont of R 7oes of e Set "

NCD dted 12992 h BM d

bused oc ad o itted a

oence pushable uder secton 13(1)(c)

red th section 132) o he Preniono Copion At?

20) Whethe t J poved by the

prsection beyond asable dob at

he ccued No2 as ested t th

doin of he sd funds, enteed no

ctos ton vov ores

NO


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ad caed e sd amut f 7 r

b CB by ing IBA

N32886 ded 199 wh aodran d d an oce

pble de se 409 f da

Pl d?

(2) e prved by h

p bynd ranbl db N, urc

d cprcy d r

red asacn ng

am f R 7 cr bk/ppers

n d d ece

pnabl nd ec 77A h

d l d

(22) W prvd by e

c byd rble db

a uhrac f t sd cprc

accud a arl e

ng h Gr Mr f MF a

er Oc Mba bfr rd f

h proced f h fad ac

dd 0/0/9 f R 79 crrs

deced ccsd N 9/0/99

s hq f R 899 rs

vr f Ms SK Jer f whch


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2

accused No.6 te Propreto d

accued No7 wa uboker nd ao

iged e ceqe ogw accudNo 1 wot y auort and for o

osderto voug cusd No6 d

aoter ceque No.488906 ded

//99 for R 8,3,/-

vourg M Nrbheam Hkhnd fo

wrongly beeg accsed Nos 9 d ad dverted d o ccused Nos 67

d 9 d terey commtted a oce

uable de ecto 3)c) d

w eco 32 of he reveto of

Crupo At?

(3 Wr rovd b te

proecto od reole dot tt

accsed No6 aded and abetted

accused No3 te aoead to

ad commted a oece punsle

dr secto 9 of e Ida

Code ed wth eto 3 d

seco 3) o he veo of

Couto Ac d econ 4 o e

d e Code

YS


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27

(4) Wer prosecuion a

sbh byon nal ot tt

ad N.3, a maia bg gra Maagr of CBM a ir

Ofe a Mmbai, b

ing pocs f afs

asacos a 0/0/991 amun

o ,900000/- rece acu

No on 9/0/99 sf o prpaqu a 0/0/99 R

8,3000,000/ voug M arba

Hhan of accus No.0

Nannra Pak w panr and on

bf of wic au No9 Kan

V. Park

eang

and

sn acus No3 ws not o be avaab

n 0/0/99 Mumbai signed

ceque barng No88906 a

0/0/99 for R 83000000/

onwi acse No n go i

r o represena of

abam araka w ase

N3 knw M a o ing w

s N rbra rakn wi

si qu a b sue wou

auory an w no sron

faourg acus os 9 an 0 a a

e of awg f aforsai


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28

eque accsed No.3 knew t nds

te acco of BOS fom whc e

eue d bee drwn, were ciead ye, acced N o3 d e id

heue daw kowg ecessay

nds wold rogly be made avalale

ogh CANFINA y acced N o.1 nd

ad ac aos o al

bac o t d s sch accsd o3 gly o absg oc a c

ea d eby commted oence

pe de co 3 () (c) read

w eco 3(2) o Pveon of

Coo c?

(25 W oved by the

oseco eyod eonble doub

a eace o he crma

coscy e asd No9 go sd

ee ceded o e accont o M.

Naeam Hakcnd wo ay del

and cosdero nd he acced N o0

ed he ad mon by g ce

daed 0/0/99 o 825 oes ad

eey ded d abed acced No3

d commed a oence ise

ndr econ 9 o he Idn e

Code ead w eo 3()c) ad 3(

YS


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29

of he Preventon o Corpion Act and

ecion 409 o he ndian Pal Code?

(26) ether roed by e

roecuion eond eanabe dob

the acced No., n heane o e

sd cocy being an An Gneal

Manager of he M, eeved n mon

f 5 e ve IBA No3686 daed1/1/1992 for edig he me o he

accoun o Muua Fnd u

eal ceded ame Cancgo

Scheme c wih he Ba,

Tmind Road Bnch Mumbai and

thereby legay afeed he ame ohe an of aced No5 and hereb

ommied oence hable nde

eion 3c) nd 132 o e

eenon of Coon Ac

7 Whehe i l ed b he

oeion beynd reaonable dob

i eane of he d oiacy,

e aed No5 go he moun of R 5

re reded o acun wh an

del or conideation and commied an

oene uihable unde eon 9 of

he Indian Pen Code ead wih ecion

NO

S


30/245

30

13()) nd seio 132) of he

eveon of orupon Act nd sectin

409 of he Ia Pel ode?

2) Wheher i pod by he

prosetion beyod reasonbe dout t

he ued No. be the Vce Presidet

o Caa exeeded powes deeated

m d bed Oe by maki netry in IBA Regster be IBA No326

dated /2/992 erdin o d

oneet aton showi puhe

of " D ad theeby mmited

ee ushble unde secto 3()()

ead wh tio 3 (2) of he Pvntoof oupio At

29 Weh it proved y he

poseuon beod easoabe doub at

the cused No, n urherce of e

onpcy ified he books of Ca

d ommtted a oe rsect

ae /2/1992 o

7 rores ad cmmited oece

puable ude o 477A of the

dian Penal Code

YS

'


31/245

31

(30) Whethr it s poved by te

poeton beyond eonble doubt

e cced No4, who w a he mateme th Assistan Geral Manage of

CBMF, srred the amount of R 7

or t ws ded to e ot of

Cgo Scheme of CBMF d d

e me to the ont of e deesed

stock broer Mnuh Milal bypag vohe dted 1/2/1992. d

ommted oee phbe de

eto 3(1) d with eo 13(2)

of e Pvenon o Copion A?

3} Wethe t poed by hepoeto beod eoabe dob t

e ed No8 exceeded e ahoy

whch w dged to nd o

5/3/1992 mde ey he Sd ook

gdig ps of 85000 he f

Nh Spg M oh

aed No 7 P Seh nd aed o

of 510 oe o nd

corepodg eg to Pav Seth -

ed No7 d o ed IB No334

ded 2/1992 o conodted mont

o 2092300/ ve of

27500000/ whot y ipt o n

NO

YS


32/245


33/245

of A.C.C. getng o 25,0000000/-

om Palav S acsd No7 tat w

no ihn ompnce tog nw a t aactio was o cous

nar nd hrb commitd onc

pnsab undr scon 31c rad

ih secon 32 of he revento o

Coupon c

Whh t provd h

posection byond ronab dout tat

accused No.8 was nused w

fnds of and mde an et daed

08/04/992 deas pad ad lgay

ased 25 croes to ausd No.

Palav wihou any del srty B

ost mmo etc nd commed oence

hbl under seco 409 of h ndian

Pal Code

5 Whtr i roved b

poston byond rsable dob a

accsd No1 wongfly credied

said amoun by sung ceqe No88905

daed 10/10/991 for 8,9900000-

our Ms SK Jvri for wogully

netng th accsed No6 nd anoer

chqu No88906 dad 10/10/99 fo

N


34/245

4

R 8,30,00000/ favoug Ms.

Nrbhm Hkhd o oul

eneng aused No 9 d 10 ddveed d of Ca o ced Nos

6 7 nd ad commied n oece

ale de secon 3() red

seco 32 o the Preveo o

Cn Act?

(36) Whee t s proved y the

oseco eod esoe dou

he used No 6 9 0 e

aeed accsed No d commed

oence ae der seco 10 o

e Inda Pea Code red wh Seo3(c) ad 3() o e reveon o

Cn Ac?

(3) Wete poved y h

oseco eyod eaoae dou

e aced Nos 9 and 0 deoed theeqe No488906 ded 0/0/ r

000000/ sed y e aused

No 3 nd d deosed e sme

e cou wh e Bk o Sock

Ecane Bc kown he

amou dd ot eon o em d

hoesy eceved he sae wo an

NO


35/245

cdraio ad cod an o

ushable dr co 03 of Id

P Code.

(38) Wh it ovd by e

poso yod easonae doubt t

asd Nos 3 d 1 bg

moys o CBM add ad ad t

ased Nos 9 ad 0 to casaraio ad od a

o usha udr so 09 o

da a Cod ad w so

403 o a P Cod?

(39) Wh rovd y teoscto byod easob dob a

acsd No6 ed ad dosd

q No88905 dad 0/0/99

a ou of 89900000/- ssu by

t asd Nos3 ad ad dosd

a n h acc kowg a sd ch dd o bog o h ad

by commd a o ub

udr so 403 of h d a

Cod

0) hr t s rod by prosuo byod rasoab do a

Y

YS


36/245

he ause No3 ig empoyee f

CBMF, ence e cnspc,

ade abete accuse No6 comme are a mal

sapppiao ommte a ac

pube ue ct 109 ea wt

ecto 403 o e Ia Pe Coe

( ) Wee pv y eposecuo eyo the easoae ou

t th accuse Ns 6 a 7

22//9 at Mma ecee

epe eqe No5877 ae

22/0/9 2 cs whc w

sue as pe e uctos o eaccse No3, m tei j accut

No04760 w te Bak o Aeca,

Mm kw e a chee

t g t em a shesty

ecee te e wtot y

et a comme ecepe e set 03 e

e Ce?

2 Wethe poe y e

posecu eo easae ta

e acuse N3, beg a empoyee fCBMF, uheace o e cspy,


37/245

ded ad abted ased Nos 6 ad 7 t

mmt a ee f imal

msarrii by ittg theu iztio d or al

mapritio of te amut agat

th aid hu ad ommitd oe

psble ude t 109 o e Idia

Pa Cd d wth o 43 o the

di Pl od?

(4) Wee t vd by te

preut beod reoable dob at

h ad N 6/1/199 ried

qu No587664 dted 6//99 r

5 es ued/pased y h auedN4 vd vuher dated 16//99 ad

deted te ame aout wit

Adhra Ba Fo Bra Mumbai

kwg at h amut agis th sad

qu dd t beg o th h

doely eeivg th e

witu y oidra ter ad

ereby mmted a ee puhabe

udr eti 40 f te Ida Pa

Cod

YS


38/245

8

( 44 Wet poed y e

poecuton beyond reaoale dout that

te aud No4 eng e emloyee oC n ternce o e onpacy

aded and abtted ccued N to com

te aoed ct o ma

mapppaton ad eey commted

a oence pabe under eo 10

o te ndan Pl Code ed wh en43 o e Indan enl Cde

4) Wete te proeton a proved

yod reaoab dob tat al e

acued ae ommted oen

unale under eon 46 & o thendn Pel Code?

4) Weher te poeuto h proved

tat ey ad oand ncto to

poecut te acued No 2 and 4

4 7) Wee t proved by e

poeuto ta the con o poute

e aued No 8 & w no

neeay?

48) Wat ode?


39/245

39

18. Bee ode the l submissos, i my iew t wold be

appropae he sbmssons of he eed Conse appeang on

behaf of e csed ae nod. Ts ha become necesay easehe sbmsons of some of te accused nadoy o eah oe

nd ome of em n e submssos have ed o shi he bude

o te ohe csed hs beig e se wod be appopae o

bey oe dow he sbmsos made by eah o hem

SUBMISSIONS E ON BE

OF ACCUSED NO - S OHN:

1. he ened Cone ppeg on behf o ccsed No1 has

sbmed a he accsed No ws caged nde seo 34 09

20-B 09 7-A o he India Pena ode ad seco 3()c and

ad w secon 3 2) o e Penn of Copon Ac n espec

of e sad anaon he Coe o accsed No made he

llowg sbmson:-

He sbmed ere was o concse

poof o show a e ccsed No eed oany o hese con

He bmed th the poseco s no

poduced ogh shee whih acodig o

s he foemos pimary ecod of des.

(i) He sumed a he enes n de pad


40/245

4

ad IA Rgt e no rlvat r ddig

who wa h po who cocud a.

(i) H bmd h t p magm was

y awa of ao d did ot i

ay objio a ay po of .

) H bmi h da i qio

w d ad h Caa ad pr o 1,4,68200/- o h atio

2. I ep of iiua g h ubm a foow:

a CONIRCY

H bmid a a o

ima opy wa t am o do

ig a ad agmt cod b

po h by di o ma

d o by both. H bmd h

admtdy h wa o di dc

aaiab m ad o fa a

cma a od th

pcio wa o a poto o bh

the ma by og ad iab

vd H bmd a h po

ad o b abl o po a beyod

h aoab db


41/245

4

VER

He submed a he prosecutio h

o brogh o reod maeral evee

boh o ad domeary before Co

d a ough h saemes o M.

Pvee Bh, Mr. P.N. Nry Ro and

. A.P. Ro wee eoded de seo161 o he Cl Poede Code, hese

wesses wee o exmed ad heee

de eene was ae o e

gs e roseuo

(c) A B OF

sumed he csd No1

wa o eused w he ud or

domo over e uds of Ca e

smed a he sed o. ad

owe o eer o y dea e meda e aused oI ad o sg ay

eques o e o Cf for he uos

o rg e uds (BAs) owards

aaos eered o d e eso

who sged he ees wee i t om

e bk u O d he Exeuve Ve

Pesde om Me Bkg


42/245

42

Deprmen m he Geer

dmnsn Depen s sbmed

he ud N1 n cmmiedny cm eh f us. He sumted

ne f the wee d deped

n cced N.1 mde ny tteme

cg e e e ence He

bmed hee dcumen wee

pduced e precun g ccuedN1 Ebts 9 40 nd 9 d

ne f he itness tted he

csed .1 cmmied br e dy

ec f he s e He e

smied h r ene under

cis 0 0B 40 A f eIdn e Cde d ect 3 ) ed

wit ecn 1) f e Prevenin f

Crpn Ac e cnceed he

prcun h been be e

"mes-r gn cued N1 c w

t cry rden hese ence

n p f the i sumin he

reed pn the fw jdmen:

( Rmeh Kumr Vs Se NC.T. f

e 26 R 102

Se f Hy V. Bj L -


43/245

2 SC 6

( ud o Spee Co Job w V S of n &

pe (Cr) 15 o 20 dedd on

uu 5 5

() Hndua S Ld, V. S of

Osa, 6 (2) sec 62

5) ohed Yu & noe V/ D ad

aoh 68 Bomby 112

ji w & Ss d V/

ne Ip AR 8 S 85

7 Hnn V S o R 152,

SC 3

8) Se of ka V L usw

2 sec 6

( K Nan V/ S of Kaa,

() sec 2

1 Vk Joh V/s S o Ke

3 SC 182


44/245

() Mej Sngh k Vs. Stt of UP,

(199) sec 1

2 Ha Candra ad anoer tc V

Steof P 1991 Cr W. 2815

2 Jn support of te sid submsos he nvted my tenton o e

domen on w rn w ped by e poseton s lo

t ednce of PW2 6 3 and nd 9 He o made commen

on id documnt T oa edene of these wtnesses be

delt i t ater g

SBMISSIONS ON B OF

N02 - N BB

22 M G K eed Col appng on bf of

aued No2 ubmted at he oowg hrge ve ben led

gst used v Chrge No 6 8 9 1 2 3 6;

17. Ot of tes hrges Carg No2 4 6 9 nd 5 r s

f ofn nbe ude vnton of Coo At

g No nd 6 e for offnc pub nde ston

09 of e Indn Pna Cod Chg No n ct of t

oence of coay pab ndr con 20-B of e ndn


45/245

45

Penal code. M Kuki submttd at t sancton w

accordd to prosecut accusd No2 was bad n law H sumitd

tht the sd snion invd H ubmtd hat h df sancto

w not dd and, tfoe an advere frence w ll o be

dwn H submtted tht documnt on wic ren

plcd by te posecuton forwrdd y th accsd Nos. 1 & 8

d he asd No. d actd on He sbmitte tt terfo,

t ion w acoded wot y apcaon of mid. H

sbmtd tat te co-sgnory hng been xonerated acd

No2 aso was b to b aqittd Thdly bmitd at even

th n atd it , e oence under etion 477A nd

9 w not made out. H aso submtd t the oence punibl

unde enton of Con At also ws no mad o H ivtd

my attnon o t n of P.W1 P.W6 .W He so

ubmitd tt te aused No.2 ws wog i t akp

Dpamnt to rod th asacons pu roug by

dng

dpmen nd he ws reporg o Vce esidnt M K Shnoy.

H ubmttd tat h job of accsd No2 to writ down t

actio u ro y dg deptmn basd on t

instrctions gvn by t dalers in oug ss He s nit a

dea no d been stowd wth te pow or authorty buy


46/245

sae ewse ea saes or cuiti.

SUBMSSIONS ON BF OFAE N.3 B.R ACYA

23 Jad, h Consl ppag o ea of

acce N3 m e w sumssns:

() S sbm ha e S

Maagm Po w hr mad

ase r xmin t sn

) Sh umid o ju ws cud

t th puc c ss ws us t

Cna an, m Cnf rd

adm

(ii) Se umid a o 403 d

5 wee mly xcliv a

co culd g an S

stte tat te asacos we o cil

ae a o cimia

ai aach o raacios

v) S umid o c bee

ac o pv a wa a gal

mial corac e c


47/245

or beeen o em Se sme t

o mpl ee ed by e empoe

Canna ga te ccused.

v) Se umied e aused No.3 s

o pul e ad, eee, ages

ude e eenio o Corupio c ere

o ced

vi) Se e sbmied t e ccsed

No.3 eier eed wt e nds o

ad e any doio ove e said nd d

eeoe secio 09 o e Id e

Code was noattraced.

e smed a a e mos i

oud be s e s n rrulay

d eefoe e provso o te dia

enal Code nd te eveio of oupi

c ee o ed

ISSIONS O BtCCUSE 4 P SBBRO

, 2 Sawae e eed oue perg o el o e

ased No made e owng sbmsos-


48/245

SO

H sbmitd tat h ancon wc waivn by P.W 5 - G.A. Shna ur fom

of nonappton of mid He

sbmtd tha t cg-, n

enty was o acd bfo h oy

wn h acon od wa pd on

0/03/996 H d y on o thvdnce o PW15 A nd

m ha om te doton o e d

wtn t wa obo tat md w

totay nncd y h Lel Dmn

o gg sncon

JSO

() e bmd ha h ocon w n

of ve ansco dtd

10/10/199 2/0/1991 6//99

7//199 nd 1/2/1992 bmtd ahee o had ace o o

06/06/992 wh w dt on wch tecl Co Ac w dmd o ha c

o c. H mted tat teeo ed co w yond t jdc

of t Co


49/245

9

OMIION ON T PAR OFROEUTON O NAME CPESONS ACCU:

(i) He submited at ceta bks who

had sied the doment wch were the

sbject mate o the posectio we o

ame as accse. Oe sch Ofce Si

shok Kma Ki has deposd fo he

prosetio Oe Ofces SM Satish

ad Ail Nara wee o proseud No

pao was ve for he sid omsso

e sbmitted, terfore h ge de

eio 120B could ot atated sce e

ersos who wee smaly siated w o

posecued

RGE ER PREVETION OFION A S N AAD

(i) e he submied hat e carg de

setio 3(( ad ( o he Preveo

f Crp Act was ot attracted to te

acsed No4 sice he was employee of

bak Mua Fd w admite

a trst ad theeore s a employe

MF the acsed No.4 w ot a p

seva. I sppot of e said submssos

ed po he dme o e Speme

ort

B

V

aoa


50/245

5

eal PeCI.

& eped

c) c e e ited my

attet t te evidence f PW. 1 S..maaj PW 14 - K.N Kaat ad PW9 -

T. and sbmitted tat case ee

made ut " psect agt te

accsed N.4 He ute sbmitted t te

qesns ee sked t accused N nde

sec 313 f e Cmnal Pcedue Cdeand cmments ee nvited n e

dcmens med as X1 X2 X-11 X1

d X He smited tese dmes

ee t pved ad ence did nt sttte

evde and culd t eed pn as

evdece agas te ased N4 H eedn e flng dgmens-

1 Sat ajee mcnd V/s YemSa - 197 SC 865

(2 Nabada De Gpta V/ BedaKma Jasa - 38) SCC 745

3 Ddas Lm V/s Emp 1932 S 69

(4) Sant Km nd tes Vs. Te Kg 39 9 93

(5) Cadk Pad V/ mpe - 930 34

6)asul d V/s e Ste f


51/245

Mhaasht- 972 SC 2

Ramawami Nada V/s Te Sae

Mdrs - 95 SC 5

He vited my aeon to te poons o sein 403, 40 d

sbmed t te eden o tee oeces were nt estabsed

b e rsetion so a aused o4 s oerned

SBSSOS O BF OFACCS 5

25 Ke, e eaed Counel appeag on bea f accused

No submitted at the dene aen by he aused No5 was nt

thg ly xpl

was isued der seto 9 o he Cml Pedue Cde He

rter submted ta he mati w s ed ad been

croboated y te esee repes y te te persos voled

e ansaton. He dly sbmied hat o vestigaon as been

ed out to d wether e explaation wh ws gve by

te aue No5 w se H te vite y attenon o

ote wch was given t te Copotin B beig Exhibit A5(4)

d the Cdit Ver dated 16/0/992 e as vited m

atet to the oe gven to the Anda B a Exi A5 and

e eply gven by te Can t ExibitA-5 ig wht


52/245

52

sa by he accsed No H sbmed ha h Ca a n ac

pad ha amon on 16/01/992. e sbmid accused

o was nvovd by prosecon Carg Nos. 1 9, 10, 1 22,

2 39 nd He vid my aenon o smns o W2

W.4 P.W9, PW 2 and .W 3. He sumied a he saemen

of se winesses nno esabh he case o posecuon. He

ivied my aenon o h vario documens suh s C No

866 -106 Ex-1 and Ehbi-2 H has aso

cmmened on e saemen o P.W 2 and sbmed a h

dnc givn y wie oes n any way conec h

No5 w ommo of g on

smied e ders renc ws iab o be drwn on

accon o e nonexamaon of he wnesse parcuay n

espc o he evence o esabish e agemn H reid

oowng judgmns o h Apex Cor:

1 P. Bngar Vs. e o aasra - 199 8

2) rad V/s. a of aaasr 1 sc 6

) ieun Heco Tomas Huney V/s.Empeo (31 19 Feder C 66


53/245

3

He as ao eneed wen submisios. I a nhel is argmes

be smmrze as nr:-

(a) rspec of crg of cospiray, e

sumie a the charge as ame es n

ae o of he harge-sheet e in he Cr

a herore he carge was usaile

aw. e sbm a he hrge was

slen s wch par f he spircy was

vk by h pscuo n spe f he

aege ee. e ste h cage

even n he bs of he eiene le by he

prosen fas o he gro as n ene

s bee l sppor o he prosecin

. h n smie s fr carg

N 9h an 1h re cocee s

No.5 ws n in ay way conn w

o en fm he eee of wneses

e fher submie h he rge Nos.

22ly an 23rly ar ba n e legain

he s No4 ws smn n

mkg pymen o e s No. an

ws fe by he eene of PW9.

submie e prseio has no

xmne h wiesses m M who we


54/245

sgtoe of who ould ve been

deposed bo he pymen of 6/0/ 99

wh wod hve esbihed he noeceo used No.5.

() He sbmied ha so far s aued No.5

s oeed, he oy ee dae as

1/0/99. He ubme h he dee

o e ued No s o //992 ahe ie of CB he hd ised heqe

of R oe fog ooaion B by

wy o aommodio d ht he sid

mou w eued on //992 d

he did o eeie y mou fom

d) He bmied h none of he domens

o whih ee as bee ed by he

poeuo ebh he e Noe o e

o eidene w i og on eod

uppos e poseio se. e fhe

umied he ee s bee ped by heoe o on he judgmen of e Apex

o Mu's e b i be

disgushed i he fs d iumses o

se


55/245

Furthe deted submsos of Kle wl e dscussed te

ppopite stage

SBMSSONS ON BF OFACCS NO S. V

26. M. Sh he leed Coue ppeaig on eh of ccsed

No6

SK Jei sumted at he acced No6 wa onced

wi hg Nos 1, 32, 3, 37 and 38 e sumited t so f

e ist tncon s concened dated 0//199, none of e

wesses hd nmed e acsed No6 SK hei. He nvted my

attetion to the stement of P.W.9. He ther sumitted at

Nihia wo ws te occsed a the eevant poit of me, was

ae on dopped as n accsed d he ws o not exmined by e

ocuon He sumtted at eve e poseton s ten

it i, it wod esta t e cused No.6 hd o wy of

knowig t te amoun elonged to Cana. He sumitted t te

PW9 ttement egoc ded he d ee

ormed e acused No.6 S.K ave. He so nved my

attetion to he sement of ccused No1 nd PW.9

Ivesgag Oe He vted m aton to e documens at

Et A-65) & Exhibi A6(6. He aso poted ot that te


56/245

6

docmen a Ebi A618 learly esashed tt a susntal

payme ade y he ased No.6 o Ca fer //

d was not onsone wih h odu of he eson who

wed o aoe he aons fo a o Canank. In a

n sell e sued s nder:-

a) Th evde addd y e oseuondd o dsoe e l oniy

e ws o evdee o d

e ased No6 had kowedge ha oney

eonged o CBM

() Tee as no evdene o nde a

e ed o6 idued y nk ol o

iue cheqeofR8.99 ors.

d) ere ws nog t da a ee

was any deeny n he ak aou o11/1/1991

(e) Te doenty evdene w ws

oght on eod y e oseuto lel

ndaed t was a gr tnsatio

ad ha, in e neve hd yde

oneon wh he Bnk d a


57/245

5

Sh ausd o7 as d

b

Th d ry dad a

r r rar raos h aud

Nos 9 d ad h as o ay

od h aao dad

//99

) H ao d y ato o

sa o W8 o Aos

araad H

d y ao o Eb A9

Ehb A8 Eh A9 Ehb a

96) ad t A- 6( H ubd aa hs doua d s ao h

oa d oud o bh h as o

h roso

h) H urhr y ao o th

sa o W7 hr hh

dt sre bo o SK Ja

hadd or o C oh au 2

ros ad u a d by ausd No6

r rory o t sad aou hh as

pd Cur

) H d o h rs


58/245

58

hrge of conpy hee no edece

egg volemet o accuse No.6. He

ee upo he juge of e Ax Co Ram Nat Maoprsd and

v

.

S of Mah Padesh epo 1953

SC 420 i Pandua andor

V

Sa of yderaba eo 1955

26. e ubmite h e cge fo the

oce ue eco 409 3 w oesashe e eie po e gme o

e Ap ou Ramawamy ada V

Te Ste of Madrs eoe 158 S 6

a U Dha and anoe V S o

Jd

and ths epoe 3

SC 97

SUBSSIONS ON BF OFAS N7 V SH:

M Panhe, he ee oue ppeg o o

e o7 me the proeo h o eme

ea we a so a o poe eea omes

Sok Reg a he Rgse egg movme o e he

Depame. e sumie ha heeoe vee neece

iae o e w o o exmo o e ee wese


59/245

9

for non duon o matel documens H d my no o

h edene o PW6 Ahok W 3 Oph

W.7, W 9 d W8 He ubmied ta h vd wh

ught o eod dd no ndcae n any nn h h ed

No 7 w ay wy nvoled wth th alegd on In a nhe

h bm a nd:-

(a) dr re wa ble o be

drw gai the prsecuon.

() Th subna l

d

wnse o he oeuon

( h we tana non

bween ' Cn nd he o

nd h were my 300 nao

e o Canba

(d) he boo o aou wee no

ly mnaid

( h hag o iy h o b

hd ans the ued o


60/245

60

SBMONS ON B OAS N08 - MK ASHOK KMAR

8 M. mi Dsai h lan oun aeang on bha o h

e No. 8 M.K shok Kma sme h chare No

4 5 7 9 an 30 wee me aa accs No8. H

sm h sa o rgum osecuo a

mae a samn h h were no rsn crgs re o

ao a 7/9/199 an 11/9/199. He nve m aon

o h semn o nsss on wic rlac w l he

roseon P.W, W. .W.7 W 7 o h relvan

oumns on wi rnc was y he roeon. I

ns sbme n:

(a) vr neee ws lal o ra

a he roon or no amng M

Jos souza wo e Dvsiol

Mag o . sbm a h

roscuon ma a aem o how suc

rson o s.

Thr s no mea agins a

No8 he omns on w relane wa


61/245

61

pced by e rosecutio sppo of he

rge, id o eblish tht e accsed No.8

ws voed te commisio o the oece

(c) Ne o he dcmt o whih ince

ws ped eithe siged by the ed

No.8 or hd .

d) It w rgd tt no ss hd give ycrmg edece git he csed

No.8

e Tee w nether dct or dect or

ccmttil edece gi the ced

No8 respect o y o he chrges

The oy mtce gs ccsed

No8 w e w Ce Dee o C t e

reet me

H de deed bmisios spet o e eidence d

docme o record wic wd be oidered at he ren sge

Te eed Coe eied o mber o jdget o he Aex Cot

wich w deat t he eevt ge.


62/245


63/245

63

and did not take any steps to ver wheer te expaton wa

coct or not He submtted tha no herefor made out y te

posecuton agat tese acused.

SSSOS O F OFAS 1 - BV SAS

30 T leed Coue appeag on behalf o ccused No11 BV

Srsn, sbmtted t te accued No1 wa e Juor Oer

and was Fnd Maager of nbons Fund of nbak Mual nd

He submted at acsed No1 was subje to dyto-day

uertendene and don and ntrol of acused No3 - B.

A Asisant General Mage, Divoal Mage etc.

He bmtted at e u No11 was meey one of e sgaore

along w e Gneral Manager BR Achaya accsed No3 for te

opeaon of e rren ccon of he anbonus Fud He sbmed

ta ce tere were no clea cut des and respobes ecfed

by he Management he Fund Maages wer not kig any

emen deon ey were merey dog aontig work o

e und e brgg he ons to boks of account as per

bak entes recepts d paymen He ubmed t the accued

No1 wle sg cheque for 8 99 ores and R 830

oes dad 0/0/99 whch are at Es 14 5

j


64/245

hd mrly adhrd to e ucons ivn by ad No.3 B.R

Ahy H ubmid ht cd No3 - B Ahy d

d to id o q on 9/10/1991 ilf d

wr igd by ad No.3 a gory No.1 ad

asd No.11 h id h o igao r rn n

opion. H bmid th t d No3 ad eir gin y

omao nor dai of h on. H bmtd h h

atdane regir did BR Aaa no Mmbi o

10/10/1991 H bmd ha, hrfo ad No11 had d

mry on rio of ad No.3. H d my

anon o h mn of P.W19 - Invigng Oir. He

bmitd t t IO d admd o-xmno tha

m o d No1 wa o mod n h FIR He o

dmd dng ivgaion i aprd a th ad No3

hd gn tion on 9/0/1991 to ad No11 o ppa o

hqe dtd 10/0/19 ad on hq wa givn o aed No9

ohr hq givn o aued No.7 beg e rpeenv

of d No6. H bmitd w ormd by PW9 -

T whn h ni i anda gir wer ow o

H bmid ror th aed No.1 had ad good

th ad hd d o ntrion of h r ahoii e


65/245

acced No3 nd tt te aed No ad no edo o oie o

aoty to queson e bonfdes of accsd No..

GS OSO

er ang perued e oal and domenty eece on

record n my ew proecuto ped beyod reoab dob

e cags agns acced No 8 3 5 7 9 & 0 Howee t

h led o e cg eveed g ad Nos 2, 4 &

for e folowg ro t ot erenfte.

32 ewee 0/04/199 o 06/06/992 t wa notced by e

Gvme tat ter wee lrge scale egure kg

acto d und of Pubc Secor Udertakgs wc were

veed n Naonalzed and oer an were poned o or e

pose o dealng n pc seurtes and ee ge amon wwere e r te pe of pbc seces we no aked p

y ny pysca cre or oer coaeral ecte suc GL

ec Sn, ereae e sm broke ou and e invesgaton was

mde nd a repor w ubmited by a Commtee w popry

own Jkaan ommtee w dscloed lrge scle


66/245

66

glaes wi w commid by Publ Sor Undaking,

Muual Fund Nonzd B wi lp of bok. Th

vtgto w md y nta Buu of Invtigation (CBJ)

d mal omplait w gtd agat vou pon n

nt a omplt w odgd on 164 t 1500 o

and n omt on w ow ad 1 Si

S Mon Aitnt V idnt aa Bgao 2) Sh .

Blubmnm Atat i Pdnt, , Bgo 3)

Si B.R. Ahaya, Gnl Mg nb Muul und Bombay

(4) Si Ani aia, h Dl nb Muual nd

By S BS S Ro Assisnt Gn Mag Cna

Mutu und Bombay ) M/ abam Hknd Sha &

Sto Bo, Bomby, 7) Si tn P Daal Sa & Sto Bok

Bobay 8 S SK havi S & S Bok Bombay ( Si

Pa S Sa & Stok Bok Bombay (10) Si Mub

Manl Sa & Sok Bok, Bomby d ( Si nugopOf Ba & Sto Bomba a om t

wa gd ht l d d ot to bo o Bomby

d nd o opiay ad hd pond o R

7 7068,200- nd ht h d amount wa td a wot

ntt gly. n ompant, da o h v aaon


67/245

he bee menoed a refud alogth teres so

dated t was leged hat cerin mou were pd to Paa

Seh hough a t me he owed severa ore of rpee to Caa

ad he sai proe, na ufered a os of R 312,87

interes th efet o 24992 l g of he copn

The chrge-seet a ed o 291996 n out of he

ae mentoe e FR ame of Sh Veugopa wa

dropped Sh nba l a expired by ht time nd,

therefore nme s so rppe om e hge-hee

mlay though he hargeheet w e agt Sh

arhia n S ayhda N Parekh, te me we o

dope he saio o proete was ge by KN. Kah

Chaia a nagig Drector of Canban Fl Seie td

ide eter o247796 dated 232996 for he proseto of N

Bubmam ccued o2 Shr .A Shea Chief xecte

Ofcer Cabak ut d aoed nto to poet P

Subbaa - aued No.4 vde leter No.CP & A/0196 dad

1996. Sr S oa aed No1 nd Sri K. Ahok Kuma

ased o8 wee remoe fom sevce uig etgato

Smar Sh B Aharya accsed No3 ad Si B.V Sriaan


68/245

ae hd e he ee dg he cre f vega

3 The ae f he preu herefre, ha he d f

Ca wee veed ve dffee ac a h bew:-

Sr. Dat mn Seme Dd o

01.1991 729 bnu sd N.9 ad1 N.6.B

2 22..99 12 sd Ns. 6 ad7 BO.

.

1.11992 5 d N Bank

4 992 Lt ManuhaM

5 1.1992 s Lt ManuaM

d hereae he d were reed bck ugh eg mea

The am wa eeed m ak 1 & "I Se he

e f R 377,820/ hu he m wa remed he

fg maer ad exe am wa eved

l

(R)

7,0

,

,

ut vd fCanaa B F & Ic By

E vd

Pcul mo ated

() 172901% NC 12 96

4%N 745222

77060

378

03


69/245

69

Ou o ese mns, fwig ms were pd o e r

acused:-

660. Hcud H P 8676M M 68

R 9

35 Durg e or agmes he leed Pub reor

M VG Prd mde eme h he ws o preg rge

n rese si ded 7/99 d 1/21992 epe o

rene R rre d R 7 rre om C o e

Mbi Mek Hee we oeed wi oy hee

o emnes ded //99 222/99 d

6/1/1992 d ever o he ue Rs 3772/-

36. ere I de wi e evee o rerd nd osder e rv

ubmso s ee o e no codeo he gnz

s u o e hree fca suo (a) bk Fn

Seies Bglore () b Mu ud my

CM d (c) Cb & I Seio omby I so eesr

o be ider e mn n w Cn eered o

o o e d use o eue


70/245

7

37. Qa i 100% subsidiry of Canbak. Cana cayng

on busness of leaig, gher purhae ad mehnt bakng

acviies As a par o merchant bakg atvties Ca made

vesments stok d ao the seonda make .e sale and

hse o shas. PW5 is evidene tated ht he joined

Cnara Bk n Deember 1971 and Novembe 12 he as

deuted to Cana s an Asst Ve President d he bugh

on eod Memondm and Artles o Assition d the sm

mkd at eered under he Compaies

Act and cuse 20 o Artcles/Memorandum o Association,

aozed o vesents Govement and othe

secuies, nldng shres Unde clause 21 Cnna was epoweed

to lend, advace money wi or iot secut However, y vrue

o the id cse, it w prhed m dog ny busess o

bakg deed he Bag Rgaos t a hs its

local Oce in Mumba d also has ts cont a B

Mumbi (Emphass suped)

38. sed No1 S Mohn w Asst e Pesden ad wa

wokig at the ged e o at Bangalore. Aed No.8


71/245

MK Ashok Kumr was Eecive Vce Pesdent, wokg he

me Oce d aed No2 N. Bubama ws Assa

Vce ese workng e bcup depme of e sme Ofc

W.2 Mr. BN Skaa has s so eece paa 6. He

so sed ccused No.8 MK Ashok Kuma a aed

No1 S Mo wee auhorzed o buy d ale secies o behaf

of Ca

39 u d M i us d ws hoze

o mke esmes nd o ed moe d me

dces d had accouns Td Le Brach of Ca

B Bomby Clae 5 of e s Deed empowee e

ruse (a o cq hod mge, de ad dpose o sres d

debeues () bow o otee e moey wh o io

sbjec o he ms s my be ecded by e Tsees.

a B aoae Bak d is m use of MF

40. he sceue bk i r oaze or ohewse

wee eed ough he decos sed by he B om e o

e d hese decos wee ued ude secto 2 ad A of he

Bg Regao Ac


72/245

72.

PROSEION WF:

41. scto s exied al 9 wtees O f tee 9

wsses, PW. 1 Ms. Vit Sd Hegde (-3) P.W 7

Mr. M. Papa Rao (Exit1) PW. 9 M. Rv Tumaai (Ext-

PW 15 M. Gr Anarma Sea (:ibit28 ad

PW6 - M. SRaa Exit-130) are al Cbak winess.

P.W 2 Mr. BN r (Ebt6) PW 5 - M.

augmli Rabdr Nat (Eit-56) PW 6 Mr. K Asok Kuma

K Eb-S, PW. 13 - M Omr Kian (xb-23) &

PW 4 - M. K Naasima Ka (Exbit-26) a wsse m

Cana

PW 3 Ms ia Madar (bt-3 and PW 8 - M

b Ray (Ebit) bo were wrg Bn o Ameic

P.W. 4 M Ajay Kmar Nagedra Kr (ibit-49) i a

wtness wo w wrking the Tamard Lne Bc f Caaa

B

PW. M. Di Jagmandas Ummrgowa (xb1)

ad PW 1 M Kio Mde Agaor (Exit14 wr

wkg he k Exnge Brc Bank o India.

.W. 2 - M Vash Kma Damaraj (it- 88) was


73/245


74/245

4

poiion o bing o ecord any de eidee n pect of he

eged ml nspcy hed ewee e acued. It h,

hwever atepd o prve he harge of ci opcy by

yg o ng on rd vee of ds o Can o Cak

M Fnd (CBMF) nd here to he epecve boke d

agn re o nd o e ke Cnk Muua nd

CBM) and iatey o Can Tugh e evidee Can

epyee he prectn ha aed e er i wch he

prhe and e of ecie wee de and he pocede t

oowed n epe of keepg of d The poeuin

exined CBMF empoyee hw ey had eeived fud ad

the duent t etaih npray hve been ough o rerd

Theeer he oun of he indivu ke i vaiou

uh Bk of Idi, Bak o Aea, And Bak ec ve een

bugh n ed o hw t ee au wee edied n he

d on Corepondigy he proetion e

hugh

e che r e o cure feed Sda Book puse

hee ecriie "RV' & 14% NCD" o e reevn dae o

whch puhe w de n gured n Sada Book and

erefe, i ha gh o ge h ee ascion o puh of

eie wee io d ogu acon d e oney in


75/245

7

ct, ws siphoned o oug brokers. Frter it ged a

eres wee made to how t the was a wrog remte of hat

patr amot releed the asto eh of he ree

dae (bease i respe of wo aos e o R rores d

7 ores ges ave o ee presed y th poseo) d hese

domen were ae o alered to how t he wrg emae

rep. I argd hat ty i w show heedoume ha og eme w mde o CB d late o

wod "CB soed t gued ws doe o

suppes asr o uds m CBMF o okes ad whe the

amo was repad it wa ot show hat was repaid y CMF to

Ca Proetio has oiousy ought o eord hee

doume to esah te of tavelg of d om Po e

om Caf to PotB CMF o PoC ie rkers ad PoD

e ga r-ow of moey to C i rd therefore t

wiho erg reeipt physa fom o seurties whe purhses

wre mde hge u ros of rupees we dveted t

gued y the poseco hat aued No1 SMoh ad acsed

No8 M.K. Ahok Kuma were ot auhoizd o de prhe d

se o ses yod the parulr mi ad ye wthout

ahoriy they hd alegedly eered o h atio d


76/245

6

eer, ey d commtd oence of cmnal beac o

puhbl nd scion 409 o I.PC ad d miaproprd

on and commid an oence hble nde econ 03 o

IPC. and cio 1() (c ead w eon 3 2 o e revenon

o on Ac and or rpoe ad crad cd

doumn nd eore, had commid oence uab de

con 7-A o C

n he een a, bmion mad y e led co

e ad t e no dc or dc vdnc to ow a

hre wa conay dir nd m nn o oke

nno ad t wl td law a dc o ge

direc ednce c o opic o cmm n onc and

e o circumana edc can o ccmstanc s to b

eahed w pon ot o gi o e ccd Jn e

en poon ner al ha ccefy brogh on

rcod dom dnc o a

Comany grd ndr Coni Ac 0% dry

ony o a C Ba wch a naonaled ank Thogh

ile 2 o Arcl o ocaon pmi nna o by and l

ci and o o nd money wh o iho cy, by ie o


77/245

77

e prvi on 21 f te Bakg Rglatns Ac and h

gid-n ad dwn by t m o m wi v

ttu c, t dd nt th trty t nd ny ne

"d b d y b bak ag t ri

f tn 2 f t B gn A d, adtdy Ca

w t bank ang f ad t. h n

n hat CB nt rhng r ng r n ba

Cana PW. 9 tatd ed at CBMF w n

hng r g r n b f T dn

n bn d by any d a bng

oo w o qo o m o n

w wr td deret aat t CBMF. CBMF n

t ad ar g rd ny Caa wh

ardng te r w wr rad by r a

ad N3 and ary ndtd at t t w wng

ttd Ca t CBMF ad n wer t wr

wg ta rd y ad t t bak

Caa aed N.3 n t y td nt t

t bkr asd N.5 6 9 ad 0 It n brgt

erd ht day wn t yt wa ad

Ca t CBM th a day r n day r tat,


78/245


79/245

9

by shg a ere wee osnsle pue nd sale anactions

sds esaled m he evdene whch een rogh

rrd. T idene ery estahes ased Ns nd 8

d n autiy o ener nt ans ynd e prul it

ye, o ag saon om e hgher oers hey eaed

rrd song e Deal Pad enes d eme the amn

CBMF A a d e t BMFs end ased Nos 3 and reeivd

money reaed vers to shw a e mn s rongy reivd

a nd ye pd th amon o he rokes T

esalshes h ws n aal an een ged

ehal ed at ere s n ass for he prscn ca

t lransato prs d a setes were enerd

he Sauda Book E amng r h se gmns ha h s

e y h voers wh wre prpard y he als o CBMF

shw h ere ws n sh nan ewse tey would have

reaed erd t nda a he mon was reed r e

prhse f L N sees On h n he vohers

dae a he amon was ngy rmed o CBF Copled

wt ths hee evdene on rord o shw h CBF s nt

delg purhse r sae seues n el o Cana I

Cana aned o purhse a sle series ould h doe s


80/245


81/245


82/245

82

upo R 50 crores per acon, e toal no exceedg R 300

oes pe day for sae nd pchase epaaely. Under Exhibi-18

wch are mues o he Bord Meeng daed 30/11/991 powe

wee delegaed as ecommended der Ex17 y hb19

wh a oe oe daed 2391991 he Mng Drecor

ecommeded deegaon of pow o Ahok um accused

No8 The recommedo were mde y ccued No2 N

alsubrmanam nd K Shenoy wh urher recommendao by

M PN. Narayanro who w he ecuve Vce Presden he ofce

oe w aso gned by he Mnagng Drecor M AP Ro

49 In edence PW6 Mrsho um n(herenfe

rered o as "A. n i oder o avod cofuson as ccused No8

MAsho umar) has gven deas regardg he mane i whh

he prhse and se aco were mde n he rnsacons d

0191 221091 & 16192 ce we concened puae ofshae shal ve des egardg he mae of pchse of shres

s saed by PW 6A n pra 11 and 5 of evdence

PW. 6A deposed o he eec ha In case of prhse of

hare, he sons were cocluded by the chef dealer of Ca

a Bangaoe on eephone wh he boers On concluson of he del


83/245

83

h would note it do i Sauda Book and paymnt r o

pucs a and wn i o mad s ddd upo by f

dae d wod v nsucons on on o Caa Ba

Bac n Bombay o m e paymn on ha o Caa. We

uing, e wod o convy o pon IBA ub Te

C dr s woud w dow IBA mbr w n

t C Bak Bombay i IBA Ise Regsr IBA i

ppad y Ba oc s p sons JBA rer wod

oain IBA nmbr dat and Ca Ba Brn nm and th

amon O t ba o ese detas ba oic woud pp

q vog Canr Bak Bnc i Bagaor On

bs o at eqe h Caara B Br wod pr BA

whh s gnry kn y o by Fuds Dep o Can

Bngao a n o o Canaa Brnh i Bombay Caaa

Bk at Baoe woud dbi accont o Caa by amon

o e cqn o a Cna's own rsacon o e ad

pa e armn ha e ous ppaed or l

d urca on bai o aa boo e ohs

prpd a intera ad ot on day a o pa d

as on b o Potoo iens ar concd siar vouchs e

paed by e B Dprm o Fns Dparm4


84/245

Vouce would ontn e nate of e eit, qnum phae

o ae ate e boke me a he aggegae mout reeivable o

pyble. I o f Cana' own asacton ae onceed te

voe e ep n te nvee Depame wh wa ue

me nd the oche would e ged b me o r te orto

nto ae oee te oe e peaed b e Ba-up

Deptmet a oe o the O wog n e ack-up

Depment The Cheue ssue Regte maed b e Bakup

eme the ouse o bue of n"

O PW2 - B Skanth w te Fnd epe o

Cna. He w matag e egse ad ent se a

ued o ated he oe ba wo l pepg ee He

te that acued No8 - M A Km d ccued o.1 S.

Moan wee wog ele n F Dpatm He h te

t he deae us to me en e eal a He h aed

hat aued o nd sed 8 e t ve m e Pd ad

heeae W2 se to xeox o of te elevant ea ad -

the po o ma enty n the eod d ae tng out xeox

o te og eal ad was etued a o ae o. o

aued o8


85/245

85

5 PW. 1 - Mrs Virt Su Hegde tted her

evdence ht e Bakers o Caa, Bangalore we Ca bak

Cgham Road Brnh The heqe dw by Cnna i cse of

pae o seriies we n avor o Ca B Cnghm

Road B, Bangalor s doe by PW2 BN Sanh a

e he ons o acse N2 - N B asbana n

ai o IBA

W 9 - Mr R rl h he sad a C Ban

Ml d (CBMF) wa a ceated by he Cra B whh

he ee and a e relean e had

aroxaey 13 nds and whh were sed o e lled rd

and here wee dfent sees e Sae CN Gowh,

CANCO, CNL e

s evide ebhe ha oney w enrsed o aced

No 1 & 8 and a a oe ws se se o rchse o

eres

E F L F 17 2 F F 10.09

3 n orde o rove he oeen o nd o Ca he


86/245

86

o R 1.29 os ad h ulma dsaio of hs fds o

h vrous aons of bos, posuon has xmind

WNos 1 2 4 6 10, 18 ad 19 PW. 2 and 6 a om na

.W. 4 om ara Ba Tmarid La Ba Mumai, P.W1 s

aak mpoy PW 9 s o anb mpoy. PW 10 s

mploy a of d W. 18 s h Accous Asssn o Soc

Bok Ms Nrbhram rchad, PW 1 9 s h nsgaig

Oc

5 PW2 a 2 dposn sad acd No

Mohan and acud N o.8 - MK Ashok Kuma w da Funds

Dpamn ad y nldd h dal as sad ha hy sd

o pacuars Dal Pad. Ausd No.1 mad ny

hdrng sp f pchas on 10/10/1991 o RL o h

aggrga am of R 729,00,00 om L ndicas

anc dsris mid. s h lumn ad

eadyfow d( sum o R 89cos o Rb a

pero dat

o 2. Th ry fuh dcas a

amn was rmd y IBA N.3200 r R 8 rors and BA

No207 or R 92900000/ om aaa Ba amrid a

ah omay. T al ah s id aEib h


87/245

87

prosecution then reed on the evene of P.W 6 M A.K

PW 6 hs alo staed te same g a hs been saed by PW2 In

para 18 he stated tha i the BA sse Regste No thee s an

en wih regard o BA No 3200 regrdin R 8 crores ssud on

Tamarind Le Branch, Bombay The sad enty a Exb-3 9 At

age 63 here s n en regd to BA No3207 T ent

gadg te amount of R 929 ores i ssed on Tamarnd

ane Branch Bombay I at Exit-40 He sed tht thogh

hese BA numbes are same s a mentoned t-59 e tot

of the amoun of hee to BAs R 17 29 ors w he

amont menioned Ex59 (msis suppied)

55. W 6 evidence para 2 s sted at e Sauda ook

w mantaned by Cief Daler i wch the sle n purchase

nsactions were menioned. n par 9 he h sted ada

k conted 70 pages nd was for e e m 27/05/199

to 29/05/992 nd onted enry wh rgd to sale nd phse

of shs nd alo other securties. Upon being show entes on pae

5 e statd tha the enres on t age were r he eriod

beteen 3/09/199 nd //99 respect o October 1991

here wee v ntes $ Nos 3 t l Nos 35 These

.l


88/245

8

entes wee boght on ecod xhit-0 oly. He has ther

stated tat as o wigd Pad Eibt 59 In

he evdenc of PW6, he has sated a the paymen fo thoe

puces ad wen t was o b mad as deded pon y the

Ce Dee nd he would ve nsto o elephone to Ca

Bank Bch Bombay o make paymen on behalf of Ca H

wod so ovey o eepone BA nme he Chef ea

msef wod we dow te IBA nmbe te BA ssue Rete

wch wold conn BA nmbe date the nme of cara Ba,

Bobay and he moun. W 2 staed h deae acced No

s. Mon d acsed No8 M ok Kma sed to ve ea

ad to m and wod ke xeox copy of te elevant ea Pad

te ppose o mkng eny n he BA Reste He as stted t

spe of on t ey ws o page 2 gad to

A NQ_32100 gadg R 8 coes sed on Caar Bak amad

Lae B, Bomay The ad enty t Et9 and espect

e ot on page te enty n egd o BA No.2107

egadg aon o R 929 coes ed on Bak Tamd

Lae h Bombay e enty s at xht40 and the BA numbes

sme s we menoned n t-59 he total amont o p

JBAs was R 729 o h was the ont mentoned n D


89/245

89

Pad - Exbit-5 and o e enes n bs-39 ad 40 wee

hndwng of acusd No1 S. Moa W 2 as ur sad

Baup O would pepar a q on h ss o

deis and, acordingly, a eqe drn n vor of 'orsevs

IBA on Tmnd Lan Bomay r a sum of 8 s was

rie y W.2 d sigd y N Nyao e rur smp

idated h e amon ad e rsfrd marnd Lne

Bnh of Cn Ban Bomay Te s eqe is a Exb-21

W2 e sed e prpd aor e n s

o drig dad 0/0/1 o Ca Bk Bgao,

drwn i vor of "Yoursves BA on Tmd Lan, Bomay for a

sm of 200000/ and s sgd y AK e s

ceques a Ex2 and 2 w dposied Caa Ba

Cunnigm Road Brnc and enry n sp of te said hee ws

mad e saem of Cu Ao No 266 mied y

h wh Caa Bak Cugam Road Brn Bango

wh is a ii162 W 2 r sd o ass o

th qu, Cd Sps we prpd y Bacp Dparm

w wre a hbis22 d 24 respey resp of wo

on Aordgy te sa wo amous w rmid y

C for edi of CBMF (Empss sppd)


90/245

90

56 From he bove evee te poecton estbsed tt

he mot o 79 croe w emtted b Cnn d ws

eie te cout of CBF. The posectio s estbed te

emitnce of 9 croe om C to CBF i repect of e

s tston dted 0/0/99

57 Aer e mout ws remitted to CBF it h bee

boh o reod t e Cb ul Fun d ccot wt

Cra Bn Tmi Lne Bnc d r ws mde om oe

Bc to nothe Bch b elerapc rfr o m re.

Te ed ofce of Cara B i stted t Bloe

58 he Cnr Bn Tmid Le B umb ecee

messe o poe om the He O d t preped mm Debt

Sp Hed Oce Aont dted 0/0/99 for um of 8 ores

d other Sp for m ofR

99 core d bot tee mot

were credted i Aot No 3980 of Bn d debit slp ws

boht o b W 4 M A Kmr Nedt

t Exibt54(

59 P9 - M. Rav Tium h depoe edece e


91/245

mittanc f fd CBM m Baa, wr n h

frm f IBA d h Cana Bk Tmrnd L Bah wa t

bak nitay BA nmb d b yd tph by

y al m a Bgal ad, tratr, h phycl BA

f h am nm d t b vd m na Ba ad

m tat hy w abt th ra m Ca Bagar

ra Bak aJard Banch. Th d wd thn bfwardd th prcrbd frm fr d d

(Sm) accnt ad pyic w civd BA nmb

wd b mtd pbd fm. a hr tatd tat

r w xt t f C Bak CB tf

60 P.W ha tatd th nrmay am wa

rngly rivd, it wd b back t h d ha d

a traa hr wa in rm pac

d that acd 1 BV. Srvaa wh wa wrkg Fnd Mgr B rct Scrtay .W

d t prpar chr Adgy, h pad vhr

hadrng v w i tw part at w

pct f dbi ny and h wr pat w n rpct crdt try

hr b prdd at xbt-7 by P.W t


92/245

92

uppr p of he docment, th a mtio of "C bos d e

debt e amo 17.29 or. T amuw dbied

SundCr ers ct.

was o do h mout wa

wogly remied o Cabak Ma Fd, Bomba T debt enry

md by PW s per ruon of d Mager M BV.

vasa - used No. The owr pr of he doumet Exit

78 th rdt part refrs o he mou of 7 o g

dt to Bakrs amd Le er aso refern o wo

Chq No488905/906 e dorme "a amn

wr

d o CBMF y by Ga Bglore. w

re

ai

d.

I dormt h word rmttd to Ca

gaor wr sord of d the word rpad wa wrt. .W

ha atd that s do r cons of M. BV

Sva asd No. (Emp uppld)

Aed No B.V Srv r gng ro d

prpro of voer at 78, preprd wo e

ow hdwrt wh d by m ad aoe ccd

No.3 - B.R. Acry Oe of CBM e he dted

00/199 or m of 89900,000/- arg N488905 d

ao o s SK Jer ad gd y acd No BV


93/245

93

Svn a aced No.3 - B. Ay n anoher hqe ate

10/ 0/ 99 for um o R 8,000000/ brg No.488906 ue

vor of Nher Hrkh n ine y cus o

n e No.3. Boh chq o eo Eiit 4

ad 5 epevely The prouo' ce heefoe o e

one ce No h cr rcor o how the

mount was wrong reve m C ite t e

cont of CBM o te or a ne o mig

moun ak o amoun w o heqe o

e No6 n No. 9 & 0

62. Ae No. BV Sv armen h umit

at he h rien oe euqe n tio o ce No.3

B Acya who w upeio oe an he wa meel

mpemeng e irios vn y ce No.3 A No3 on

h or

tke rnt ee whih

onere

at pproprite ge

6 he poeuo ebie a o aec reg

w w kp y CBM xhi0 a ee rgr

e of cc No BR Ay o 0 h n 2


94/245

4

Ocb 1 w brugh on rcrd 052 cvly

Ts ws show sablh h ccd No.3 - .L Achya w n

Mub bu h w a Bgalr f ocl du T docun

n bugh on rcd by PW. Th ns rspc f

ndanc o acusd N B Srivasn woud show ha h was

prsn on 0h h d 12 Ocobr, ad hs s

kd hbi 0(3) cllcvy. Ts w show abh

ha acsd No. w pn on h said das.

64 ordr o sbsh ha aun was ac, dpsid in

h ccoun f s Nbhra Hrakchd h prn xid

PW 8 Mr Muksh Johi Ehbi44). P.W has d s

Nrbhr Harakhad was havg accoun wh Bak f Ida

Sck ng Banh ad a , accusd No. - K Prh

d accusd No 0 - Naandra Parh wr h parnrs. H has

sad a h usd ppa chqus pr srcs of ccsd

No Kan Pakh. h dai wr al giv b fr

prpaaon of chqs and h usd o gv araion f h

acos. I rspc o chqus cd ohr pas h

sd o b dpsid ccn h Bak o Inda, Sok

hag Brnch by P.W. 8 ohr s bs. H has sad


95/245

95

a hqe N.88906 dad 10/10/99 f R 8,3000,000/- sd

v f M/ Nbhra Hrca ignd by h acsed

N11 B.V Sva nd asd N3 BI Achya f CBMF and

chqu wich at Ebit- 15 w depid t acnt f he

eng aount N 1400 T ws deoitd by f cd

sip r a s 86,0450/ ad h vr id f he

edit p i nind Caa B Cheq at E- f ant 83000000/- d secnd heque N.48891 fr R

260640. h credit s hs b id at Exibt-1 The

scutin ha thfre ealihd t e chequ wch wa t

e rmd bac C wa fac, md t accd Ns

ad 10 h parrs f M Narbherm Hakhnd y eqe

wh at Ext15 wich wa nd y accsd N.1 - BV

Siasan and accsed N3 - BR. ya. Tis dit sip as en

ug n rcrd by PW 0 D Jaghnda Ueganwa.

W. 10

rght n rcd Ebi1 ad 113(1) wh

fle:ed he d nt rsp cdt sp B f d ded

0//991 f m f R 85606,0/ he stent f ac

f s Ne Har arg acn N1400

03/10/991 31/10/1991 B f Ind Sk Ehge

B


96/245

96

Aer he s mu ws ve ccse N. 0

Nancanra rkh sse cheqe k ni arin

N577597 e 0/0/99 fr R 8200000/ r f S

Jv - acce N6. Ts ce ws sgn by aus N0

Navchnr a. s che E- 2 The rsecn

h s sbshe n he sam y, : r rev

8000000/ accus N.0 mi mun R

8200000/ accs N - SK vr A h saemen f

n a Exbi an (2) sws accry bi eny

was me fe e paymn R 2500000/- h aun s

Narbheram Hkn Prsecun se eere e

acse N0 - Nananr r uz amn f R

8000000/ ch ws igay reci m na Bk hg

ee ws n el rcn re any securiy much less

purhas sal 4 NCO. he acun Narbhera

Hrkhn wch is p bala a n

0/0/99 ws 444828 n sg balnce n h

w R 622286 hes es ae exi Exhbs

an (4 svey


97/245

97

66. Out o t ohr h for 179 cros wch was cv y

BM, again acs No.3 - BR. Achaya an accs No11 B.V

Srvaan ssu hqu bag No88905 at 10/10/1991 for a

sm of 89900000/ vor of Ms SK Jhavri wh

sig by boh h acus an wh is at xbt 4 Ti h

wa osit by acc No.6 - S. Jvri in hs account No19186

wi Bak of ni, Soc xang Brc Mmba by pay-nsp o

Bak o Ina on _sm t. h ay-sp bn brough o

rcor by W 1 - Mr Kshor Mahao Ajgokr a at Ei

1 7 an t am an a of chq at ibi-14 lly wh th

ay-si a Ehibit117 roscion brought on rcor h

statmn of accnt of accs No.6 S.K. avri barg accon

No.1986 wh Ban of na, Sto xchng Brnch, Mmbai a

statmn s at Eit15 a th rvat ny rspct of

m of 8,99,00000/ at 10/10/1991 s mar a Eit

151) Frt posction h bugh on rcor a ch

barg No370306 ss by accu No6 - SK havr at

09/10/99 r Rs 4,765,3/- i vor o Sto xng

ar Hous which s a Ehbt-1 16. con cas ta th

opin baanc of h sai accont w 9,1,8660097 which i at

it 115 an h hq avo o Stoc xcng arng


98/245


99/245

99

Detment and tey were e pesons wo were onudg te deal

on be of Caa. Ased No2 - N Balrma made n

enty daed 22/10/1 991 n e Deaers Pd o Cna, Bangaloe

egrdg the urhe o 12 res 14o NCD om Muua Fund atR

100/- R 12 res and alo menoned IBA No325 1 i e

Del Pad Th was to ndate h n amount of R 2 oe wa

emted y BA No321 1 on nra Bak Tmrd L Bc,

Muma PW. 6 - AK Ki oved he ad doumet and i mked

Et-6 he Deal ad s e d g of accused No2 - N

Blrmana oseto se tt ae e deal w

coluded ene would e made he Sauda Book d n ae

wee deal wh wee not onuded o ene we made the

Sauda Boo PW 6 h aed t the Sada Book at Ext 60

cy dd not onta any enty regard o ansaon dated

210/199 r R 12 es

68 he payme or ese ps wod e mde by gvg

uon on eeone to a Bak Bn, Muma wo e

red o mke ayent on eha of Ca When uh

trucio wee gven to a Bak Ban in Mma he Cie

Dee wod ge ion on teehone and he used to ovey on


100/245


101/245

0

No.26645 maintaied y Caa wit Can Bak Cnngham

Road Branch, Bagalore nd it a Ei-62, wic indited ta

the ceqe deposd wit anar Bak Cnm oad

Bh Bgoe

70. P.W.2 evdee hs sted t e credit slp wod e

prepared he Back-p Deprtme of C Bglore o te sof the cheque a Et-25 and his was submted to Cra Bank

Bc at Bangaoe w A o3215 The amount thefor, ofR

12 rores oly emitted y Cana to te credi of CBMF

Ts credt sp edp y .W2 en exited Eiit-26

rosection cse is at n te was o dea y Caa wth

CBMF for tns of 12 roes.

71. W. in i evidence as sated ta e asr of moey fm

o Bch to aoer Bnc was mde by a tlegrapictfe or

y ma tsfr He staed tat o reevg the messag o

teephoe om the Head Oe Caaa Bk amarid Le Bch

Mmi prpad redit adve dated 22/10/991 of Canra Bak

auhorzg cedt of 2 ores to aot No314 CBMF Ca.

O ts rdit advise M Mani ad pt s initials Tis edit advse


102/245

12

a Exbit ( Tis bi shows a an aoun of R 2 roes

was eded o the accoun No.39 of Cango T saeme

o on was maked fo idenifcaion by he Invesgag

Ofce PW9 d s son s 8( o X8()

72. So as b abisd by prosecuton t e mone

C o ba Ml F CBMF). Ae he

ou eved by M ode o esabsh wa appened

eee, e poseuio s emed PW 9 Rai iai of

e CBM Mub. He hs saed is evence ta e nds

which wee emtted o CBMF were he fo of IBAd i was used

be oveyed o eepoe by ny oic om C Bagoe

He se e pys IB of he same um used to

ome o Ca Bgloe He s sd a ae pesig IBA

ey ed o ea au n of ds o Ca Bgoe

Bak Tmad Le Ban Depending upont scheme to

wh was ddssed i woud e foded o e d ds fo

eecing cdi i ds (Scemes) acco. H has fuer sed t

tee as exeso oe of Ca Bak M isef (ps

supplied).


103/245

03

73. PW 9 brought o eod E- 104 wih he oce

py of he leer daed 22/0/99 of Canak Mal Fd

addressd o he Mger Canara Bk, Tamard Lae, Bomay

Slly Canak Mual ud also has addressed a ler o he

Mager Bak or Mke daed 25/0/99 elosig IBA

No32 daed 22/0/99 r a or R 200,00000/- he

d lete a Eb-03. h

at e aun of R1

0w

w

rm

it

f

m

Cana was byCBM. He ha rer ed t he voucher

dated 22/0/99 pepaed n he hdwg o oe M Rajesh

Pwa ad coed poo; he uppe poro de

poro d e ower poo was red poo and elow he

gnatre o Mr ajesh awar PW 9 sged se he

heked He as sted hat accued No PJ Subaao ad

sgned e vouhe o appovl s de vouhe a

Exh-02 PW9 rher saed he de poo o he

vouhe enoned ha he out o 2 res wogly

reeved o na' Aou. He ha he aed a red

poo o he douen however showed ha n ot o R 2

ore was pd o SK Jhave vde heqe No8737 per he

to o Caa Bagaloe He her saed , n


104/245

1

norma couse he amont was gly rive by CBM on

accon of Caigo's Cen nt it wol ave een emitted

ak to Cafa. However, in he pesent se tea of reming he

aoun o Caa the aon wa pai to SK Javeri y ceqe

No.587347 He fuher state he not persony kow SK.

aver hough he was one of the okers eag with CBM. The

evence of wiss esshes t hogh in he reco of CBMhe amont was wrongly rceve y CBM tea of remtg bak

the ai amount te money paid SK Jhaveri voche at

Ehit 02 was signe y accue No.4 PJ. Suaro

4 W - Timai as e state t one ay ee

e asaction ie on 2 M B Acarya - accs No3

ake to pepae a heqe or 2 croes ourg S.K

ave He has s hat ere the cheqe was prepare he has

ke B Aaya e eason why te cheque wa to e pepae n

our of Javeri. He h stte hat BR chaa tol that he

shou pepae he heque an g it to m an theeafte he

wol io aou the natue of aactn He st tht

te cheque was prpare y m an gne i an sice he cheque

a e signe y one mo signaty he took the eqe to


105/245

5

Na and when e did so e was aked by about he atue

of tasacon involved. PW 9 has ten sated at e iomed

wat tod t by M Ay d, erefe A Narcha

o sged te eque He en ook ceque to BR Aya Te

eque n e andwritg o ajes Pw P.W. 9 s e

stated at toug e ceque pepred o 21st te dte on e

eque was put as 22/10/199 Te eue at t-78 PW9

eeoe esbed a te eue peped at e

tace o ccused No3 BR Aharya

5 P.W9 s te stted tat on 22/10/199 cued No4 PJ

Subbao iormed PW9 tat a amunt o 2 s ad been

eeived om C Bangoe toug IBA d it was met

Cgo Sceme PW 9 e sated tat te commo

attedane Regte was kept o oces ad saff y CBMF

egte o te mon o Otobe 99 boug on ecod at

E10 d n wic it mentoned tat on 22/10/1991

oce v M . Ased No.3 M P Subbarao

accused No4 nd M Al Naiaa wee pesent t h bee

estbsed by e psecuon t he aued No6 S.K. vei nd

ccused No7 - Pav Set ad ot Accout beag


106/245

N.0478601 Bk Aeca Mb.

76. PW. 8 - Mr. Prnab Ray a tated n edence that e wa

wrkg he Acut Deparent Bak Aer ad tht e

ceuqe daed 22/10/191 Canara Bnk earing N.587347 r a

f 2 re w ued in ur .K. Jhaer at Exbt-78

ws deposted i he Jont Acout No04786011

acued N 6

S ae d acued N7 - Pala Seth wc acct

itied i the Bak Aerca Mub PW8 h tated tt

e ceqe depted by y paynlp Bk

Aeria dated 22/0/99 f a u f 2 re in epect

heque beaig 58734 7 t the credt he Jt Accunt M/

S.K Jhavernd PalvSeth. Te pin-slp had been exted at h

ace d t at 79 ad the cheque wih w deited

h been mrked at Exht-78.

77 PW8 h ther ted n eene that he peng bce

in e d Acnt 220.199 wa 1578947223 nd

e e eque w credted he accun, the aun ued

r kng payent t Mr. R Bhra e ceque dated 2/10/1991

r 5937000/- Te ad ceque a recd at t-80


107/245

1

He sed e ner ceqe f e sme de r

111786/ ws sed by ccsed N6 S ve n v f

Bn f nd /c BO Ml Fnd e sd cee s

81. ner cee ded 1/1991 fr 9/

w sed by ccsed N6 S ver n vr f B nd

/c. BOI Ml Fnd dwn n Bn merc. cee s s

bg n recrd b8. ner cee 83 f e

sme de f 63/ ed by Sre Jver ccsed N6

vr rm d l brg n crd. PW. 8 s

rg n recrd w me cee 8 nd 8

ssed by ccsed N 6 Sre ver f

ketan parekh 1992 stock scam judgement special court mumbai

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