BOMBAY (PTI): Hiten P.Dalal,a key player in the controversial securities market, was on April 30 sentenced to a year’s rigorous imprisonment in the Rs 78.45 crore fraud involving the standard chartered bank, in the first conviction in the country’s biggest ever securities scandal.
The special judge justice §.N.Variava trying the multilayered scam offences, handed down the sentence to Dalal finding him guilty of issuing four checks worth Rs 78.45 crore to standard chartered bank which were dishonored.
The court, which also slapped a fine of Rs one lakh or in default to undergo imprisonment for a further period of three months, found that the prosecution had established beyond doubt that Dalal had issued the checks in discharge of his liabilities to the bank and that these liabilities were connected with securities.
Dalal had issued the checks to the standard chartered bank to discharge his liabilities arising out of differences in contract and delivery rates of securities, but he had claimed he had done so for purchase of various units.
Justice Variava kept the sentence of imprisonment in abeyance for two months and also granted bail to Dalal on UN application moved by him but tagged a condition that he should not leave the city without court’s permission.
Article extracted from this publication >> May 7, 1993
