Charge-sheet filed in CBL duping case

MUMBAI, OCT 28: The State Crime Investigation Department CID, Crime has on Wednesday filed a charge-sheet in a multi-crore scam involvi...

MUMBAI, OCT 28: The State Crime Investigation Department CID, Crime has on Wednesday filed a charge-sheet in a multi-crore scam involving several one-time confidants of Big Bull Harshad Mehta, officials of reputed co-operative and nationalised banks and members of the Shiv Sena front, Sthaniya Lokadhikar Samiti.

The charge-sheet was filed before Additional Chief Metropolitan Magistrate C L Thool and names 25 accused with different roles in siphoning of money. The case dates back to 1997 wherein the Centurian Bank Limited CBL was duped of over Rs 12 crore. Interestingly, the investigative agency has recovered cash and property worth Rs 6.5 crore involved in the scam. Here are the facts revealed during the investigation thus far.

Stock broker Bharat Khona, who was introduced by Mehta in 1989, appears as the prime accused in the case. It is alleged that the present scam has its roots in Mehta8217;s alleged black deeds over the years.

After his release from the Central Bureau of Investigation CBI inquiryin 1994, Mehta formed a group of share brokers involving Khona, Shrenik Shah, UM Kamdar and others. This group was assigned the role of identifying prospective promoters and companies for the sake of rigging money through shares. Later, Mehta allegedly dumped all these brokers who had borrowed heavily from the market for the money spinning game. When the brokers8217; financiers and creditors started asking for repayment, Khona allegedly hatched the plan to empty bank coffers.

Khona mainly operated his account from Janata Sahakari Bank JSB and Bank of India BoI. He had borrowed Rs 12 crore from JSB using the overdraft facility. This was done at the behest of bank the management, allege police. Khona and JSB officials used facilities like temporary overdraft, bill discounting, loans against fake fixed deposits and shares including bogus shares to be used in the stock market.

When the need for more money arose, according to investigations, Khona allegedly decided to forge Letters of Credit LC issued bydifferent banks including Allahabad Bank, Union Bank of India, Bank of Baroda, Canara Bank, Times Bank and Janata Sahakari Bank. With the help of bank officials, Khona and his brigade got printed blank LC forms. Later, the same officials allegedly provided samples of authorised signatures to the defrauders. Letterheads of the banks were also printed to raise money from other branches of the banks.

Later, non-existent companies were allegedly floated by the accused and accounts were opened in different banks in their names. Forged LCs mentioned above were operated through these accounts and money was allegedly disbursed flouting Reserve Bank of India rules.

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While such transactions were going on merrily, it was a manager at Andheri West branch of Allahabad Bank who realised that the account opened in his bank was in the name of a bogus company. Khona had deposited Rs 1.35 crore with his branch and wanted to transfer the same to the CBL against a forged LC. Alerted at this point, the CBL lodged a complaintwith the D N Nagar police in July 1997 and investigation was taken over by CID in December 1997.

The accused named in the charge sheet

Bharat Khona 8211; broker

Manoj Mota 8211; sub-broker

Saket Kothari 8211; share trader

Ramakant Tillu 8211; chief branch manager, Bank of Baroda BoB

Jitu Nayak 8211; cashier BoB

Jayesh Desai 8211; Pvt service

Atul Shah 8211; Pvt service

Sameer Nair 8211; Nephew of former CBI deputy director Madhavan

Jeevan Sawant 8211; Pvt service

Dattu Sawant 8211; Peon, Union Bank of India

Dinesh Amin 8211; Pvt service