Dalal's sentence suspended

NEW DELHI, Sept 18 (PTI) — The Supreme Court today suspended the seven years’ rigorous imprisonment sentences given to stock broker Hiten Dalal and former Canara Bank official S. Mohan in the 1992 multi-crore securities scam while admitting their appeals against their conviction.

A Division Bench comprising Ms Justice Sujata V. Manohar and Mr Justice B.N. Kirpal, said, "The suspension of sentences ordered by the Special Judge S.N. Variava would continue during the pendency of their statutory appeals."

Both the accused, in their criminal appeals before the apex court, had challenged their conviction saying their actions during the securities scam at best amounted to only technical offences and not economic offences.

The Special Court on August 14 convicted Dalal and Mohan on charges of siphoning off Rs 33 crore from Canara Bank Financial Services (CANFINA), a wholly owned subsidiary of Canara Bank.

However, the Special Judge had acquitted M.K. Ashok Kumar and N. Balasubramaniam, former Executive Vice-President and former Assistant Vice-President, respectively of CANFINA.

Mr Variava had held Dalal guilty of the substantive offence under Section 411 of the IPC (receiving stolen property in respect of which the criminal breach of trust was committed) and section 120 (B) of the IPC (criminal conspiracy).

The court also held Mohan, former Bangalore-based Assistant Vice-President and dealer of CANFINA, guilty of the substantive offence under Section 409 of the IPC (criminal breach of trust) and sections 13 (1) (C), 13 (1) (D) read with Section 13 (2) of the Prevention of Corruption Act.

The Special Court had also imposed a fine of Rs one lakh each on Dalal and Mohan, but granted the duo two weeks to appeal to the Supreme Court against its order.

Consequently, the order sentencing them to seven years’ rigorous imprisonment and a fine of Rs one lakh each has been suspended until that period.

This was the first judgement of the Special Court ever since the multi-crore securities scam rocked stock exchanges all over the country six years ago.
The court rejected Dalal’s contention that the offence for which he was being convicted was purely technical and not an economic offence.