NEW DELHI (PTI): The Bombay-based “big bull” Harshac Mehta is “being charged with cheating, forgery, criminal breach Of trust and other offences relating for the multi-crore stock market Scam in the first information report to be filed by Central Bureau of Investigation (CBI in a special Court in the Indian capital of New Delhi by Friday, official sources said here June 3.
The CBI team headed by K Madhavan which has drawn up a comprehensive report, will initiate steps to prosecute Mehta under section 409 Indian penal code (IPC (criminal Breach of Trust, Sec.420 (cheating and dishonesty, Sec.1208 (criminal Conspiracy and punishment for it, Sec.467 (forgery of valuable security, Sec, 468 (forgery for purpose of cheating, Sec.471 (passing off a forged document as genuine and other charges.
Official sources said Mehta would also be prosecuted for ‘bribing government officials.
He allegedly conspired with bank Officials to misuse public funds to be tune of several hundred crore the sources said investigations would also be launched against all the financial institutions, including foreign and Indian banks, which have been involved in the “gross irregularities.”
The stock scam has been termed by CBI officials as the “biggest financial scandal” which has so far come to light in the country.
Meanwhile the Center was June 3 working out legal measures, including possible promulgation of an ordinance to seize the assets of “big bull” Harshad Metha and bank officials allegedly involved in the Rs,3078 crore stock scam disclosed by the Janakiraman committee probing the scam scandal, according to source.
Meanwhile, the state bank of India chairman, M.N.Goiporia, was June 3rd asked to proceed on leave in the wake of an indictment of the bank’s role in the multi crore scam An official spokesman said June 3 that in cabinet committee on political affairs at a meeting presided over by the prime minister, P.V.Narasimha Rao, previewed the RBI deputy governor’s report on the stock scam and the follow up measures recommended by the six-member committee.
Article extracted from this publication >> June 12, 1992
