NEW DELHI (PTI): The Central Bureau of Investigation (CBI) has registered yet another case against the big bull of the stock market, Harshad Mehta, his Delhi based representative, Mohan Khandelwal, and officials of two banks and a public sector company charging them with criminal conspiracy in a Rs 395 crore fraud. The CBI also recovered incriminating documents during searches conducted in this connection on the premises of the accused, a CBI press note said here July 27.
The others against whom the CBI registered the First Information Report (FIR) were three officers of the Power Finance Corporation (PFC), one officer of the Union Commercial Bank (UCO) Bank, Bombay, and some unknown officers of the Grindlays bank, the note said.
The CBI, in its FIR, alleged that the surplus funds belonging to the PFC were diverted by its officers and put under the control of Harshad Mehta.
This helped Mehta in using public funds to make large profits in the money and securities market, the note said,
During 1990-91, the officers of the PFC issued Reserve Bank of India (RBI) checks to the tune of Rs 395 crores in favor of the Grindlays bank, New Delhi, though they were asked by the board of directors to invest the money in UCO bank.
Article extracted from this publication >> Aug 7, 1992
