Industrialist gets 5 years jail, fine in fraud case
A special CBI court has sentenced the owner of Jaipan Appliances, Jainarayan Agarwal, and eight others in a 17-year-old banking fraud case. All the accused were collectively fined Rs 4.8 crore and sentenced to five years rigorous imprisonment.
Four others were acquitted for want of substantial evidence. Dena Bank had been defrauded to the tune of Rs 3.6 crore.
Agarwal; Kanhaiyalal Adani; Guruappa Ingle, owner of Renuka Scrap Traders; Bhupendra Parekh, owner of Parekh Enterprises; Valentino Saldin; Ghevarchand Laxmandas Chajer; Jatin Jayantilal Shah; Manilal Maganlal Trivedi; and Vinay Sabhajit Tripathi were found guilty.
The conspiracy was to send fake telegrams in the name of Medhasan Branch of Dena Bank, Gujarat, to various branches of Dena Bank, for money to be credited in the accounts of those convicted.
It was also alleged that bank officials actively helped in the fraud by crediting various amounts to their accounts and permitting them to withdraw the amounts, but this allegation could not be proved.
In one instance, Agarwal had opened an account in Dena Bank, Amli, Silvassa and he had authorised Shah to operate that account on his behalf. It is contended that fake telegrams were received by the Amli branch for money to be credited in the account of Jaipan Appliances. Those amounts were diverted to the account of Jaipan the pliances in Mumbai and some cash was withdrawn.
“We have argued that the main culprits were some bank managers, since they had classified information that made the transactions possible. In fact, one was arrested as well, but not charged,” advocate Mishra, who represented Agarwal, told Mirror.
“The bank is victim of the crime and therefore it is necessary to take wrongful loss caused to the bank in consideration while awarding the fine. In such type of cases, no real justice will be done if attempt is not made to recover the proceeds of the crime,” observed special judge AD Karanjkar.
Four others were acquitted for want of substantial evidence. Dena Bank had been defrauded to the tune of Rs 3.6 crore.
Agarwal; Kanhaiyalal Adani; Guruappa Ingle, owner of Renuka Scrap Traders; Bhupendra Parekh, owner of Parekh Enterprises; Valentino Saldin; Ghevarchand Laxmandas Chajer; Jatin Jayantilal Shah; Manilal Maganlal Trivedi; and Vinay Sabhajit Tripathi were found guilty.
They were convicted of cheating by personation, forgery, using genuine documents as forged and conspiracy. If the fine is recovered, 90% will be given to Dena Bank and the rest to the government. In 1997, Dena Bank provided a facility known as telegraphic money transfer. According to this system, money is electronically transferred. It was the case of the prosecution that this facility was misused to deceive Dena Bank by sending fake telegrams for money to be credited in the account of an account holder and then later withdrawn.
The conspiracy was to send fake telegrams in the name of Medhasan Branch of Dena Bank, Gujarat, to various branches of Dena Bank, for money to be credited in the accounts of those convicted.
It was also alleged that bank officials actively helped in the fraud by crediting various amounts to their accounts and permitting them to withdraw the amounts, but this allegation could not be proved.
In one instance, Agarwal had opened an account in Dena Bank, Amli, Silvassa and he had authorised Shah to operate that account on his behalf. It is contended that fake telegrams were received by the Amli branch for money to be credited in the account of Jaipan Appliances. Those amounts were diverted to the account of Jaipan the pliances in Mumbai and some cash was withdrawn.
“We have argued that the main culprits were some bank managers, since they had classified information that made the transactions possible. In fact, one was arrested as well, but not charged,” advocate Mishra, who represented Agarwal, told Mirror.
“The bank is victim of the crime and therefore it is necessary to take wrongful loss caused to the bank in consideration while awarding the fine. In such type of cases, no real justice will be done if attempt is not made to recover the proceeds of the crime,” observed special judge AD Karanjkar.
