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Friday, Aug 05, 2005

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Securities scam: Supreme Court suspends imprisonment of accused

Legal Correspondent

NEW DELHI: The Supreme Court has suspended imprisonment, ranging from one to six months, of the accused in the securities scam.

A Bench, comprising Justice Y.K. Sabharwal and Justice G.P. Mathur, suspended the sentence while admitting a batch of appeals from K. Margabanthu, former Chairman and Managing Director of UCO Bank, and seven others challenging the impugned judgment of a special court in Mumbai dated June 6.

The Bench said: "Appeals admitted. The appellants are stated to have deposited the amount of fine. So far as the substantive sentence of imprisonment is concerned, the same shall remain suspended during the hearing of the appeals, subject to each of the appellants furnishing a personal bond and a solvent surety to the satisfaction of the special court, incorporating the same terms and conditions on which each of the accused-appellants was on bail during the trial."

The Central Bureau of Investigation had filed a case against Mr. Margabanthu and others, including Harshad Mehta (since deceased), for various offences under the Indian Penal Code and the Prevention of Corruption Act.

The special court, while sentencing Mr. Margabanthu to undergo rigorous imprisonment for six months and pay a fine of Rs. 1 lakh, sentenced other accused for periods ranging from one to three months, besides fines ranging from Rs. 25,000 to Rs. 2 lakhs.

The court, however, suspended the operation of the sentence to enable them to prefer an appeal.

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