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SC affirms 1-yr RI for Hiten Dalal

Our Legal Correspondent

NEW DELHI, July 11

THE Supreme Court on Wednesday affirmed the judgement of the Special Court in a 1992 securities scam-related case under which Mr Hiten Dalal, one of the prime accused, was sentenced to one-year rigorous imprisonment with a fine of Rs 1 lakh.

A three-judge bench comprising Mr Justice B.N. Kirpal, Mrs Justice Ruma Pal and Mr Justice Brijesh Kumar thereby dismissed an appeal filed by Mr Dalal. The judges also imposed Rs 10,000 on him.

While admitting his appeal on November 3, 1995, the court had stayed the operation of the impugned judgement as a result of which Mr Dalal could roam about freely. With the dismissal of his appeal, Mr Dalal can now be taken into custody to serve the sent ence as soon as the orders of the Supreme Court are communicated to the authorities concerned.

Standard Chartered Bank had lodged a complaint with the special court under section 138 of the Negotiable Instruments Act accusing Mr Dalal of failing to honour cheques worth Rs 78 crore. These cheques were issued by the accused to discharge his liabilit ies to the bank arising from the differences in the contract rates and delivery rates in transactions undertaken at the instance of the accused.

Taking judicial notice of the major financial fraud, committed by Mr Dalal, the special court held him guilty under section 138 of the Act. The court had sentenced him to one-year rigorous imprisonment and a fine of Rs 1 lakh. It had said that if the ac cused defaulted in paying the fine, he would suffer further imprisonment for three months.