Hiten Dalal convicted in Rs 130-cr scam

Stock broker Hiten Dalal and two former bank officials had siphoned bank funds.

A special court has convicted stock broker Hiten Dalal and two former bank officials for siphoning off funds to the tune of Rs 130 crore from the bank in 1991.

The special court for Trial of Offences Relating to Transactions in Securities Act (TORTS),presided over by Justice J H Bhatia of the Bombay High Court,convicted and sentenced Dalal,R Dhankumar and S P Kamat,both former managers of Andhra Bank,to two years rigorous imprisonment last week.

The trio have been found guilty of conspiracy,cheating and falsification of accounts under the Indian Penal Code and Prevention of Corruption Act.

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According to CBI,the trio executed bogus fictitious and non-existent transactions in 1991 and diverted funds up to the tune of Rs 130 crore and thereafter criminally misappropriated the proceeds.

The court,while convicting the accused,observed that these proceeds were “criminally misappropriated” to Dalal’s account.

Dalal was earlier convicted along with stock broker Ketan Parekh in other cases related to the same scam during the period 1991-92.

CBI has chargesheeted Dalal in over 25 cases in the scam.

Adani group chief Gautam Adani. The regulator made it clear that none of the charges in the show-cause notice could be proved. It also confirmed there was no violation of the Sebi Act concerning fraudulent or unfair trade practices.

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