NEW DELHI, SEPT 18: The Supreme Court on Friday suspended the sentence awarded to stock broker Hiten Dalal and former Canara Bank official S Mohan by the Mumbai special court in the infamous 1992 securities scam case. The apex court simultaneously admitted their appeal against their conviction by the special court.The division bench consisting of Justices Sujata V Manohar and BN Kirpal held that the suspension of the sentence ordered by the special court on August 14 would continue till the appeal was disposed of.Both accused - Dalal and Mohan - pleaded in their appeal that they had committed only a technical offence and no economic offence as was sought to be made out. The special judge was, therefore, not justified in awarding the punishment, they added.They were sentenced to seven years' rigorous imprisonment and a fine of Rs 1.5 lakh each by special judge SN Variava who held them guilty under the Indian Penal Code for criminal breach of trust.While Dalal was held guilty of offences underSection 411, IPC, (receiving stolen property thereby committing criminal breach of trust) and Section 120B (criminal conspiracy), Mohan was convicted under Section 409, IPC (criminal breach of trust) and various provisions of Prevention of Corruption Act.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.Investigations had hinted that Dalal siphoned off Rs 33 crore from Canfina, a wholly owned subsidiary of Canara Bank, by disposing the Cancigo units even though they were not transferrable.According to the Central Bureau of Investigation which probed the scam, Dalal committed a serious offence by unauthorisedly selling the non-transferrable Cancigo units, ignoring the lock-in period. Canfina, on its part, adjusted a sum of about Rs 25 crore against dues from Dalal. The balance of Rs 7 crore was paid to him later.
