Ex-Punjab & Sind Bank manager, 2 Directors jailed in cheating case

New Delhi: A Delhi court has sent a former Chief Manager of Punjab & Sind Bank and two Directors of a private firm to three years in jail for conspiring to cheat the bank through forged documents to obtain credit facilities worth over Rs 6 crore.

The court handed down the jail term to 71-year-old Jaswinder Bir Singh Bedi, ex-manager of the bank's New Delhi branch, and Directors of M/s Morgan Tectronics Ltd company - Pramod Vijay Khullar and Vinod Vijay Khullar and imposed a fine of Rs 3 lakh each holding them guilty of cheating, forgery and criminal conspiracy in a 2004 case probed by CBI.

Bedi, who was a public officer, was also convicted under the provisions of Prevention of Corruption Act, with the court saying he had "abused his position as public servant for giving pecuniary advantage to the Company and its directors."

"It is found that prosecution has proved its case against all accused persons beyond reasonable doubt that all accused entered into criminal conspiracy to cheat the bank on the basis of misrepresentation and forged certain documents and used them as genuine to obtain different credit facilities from Punjab & Sind Bank," Special Judge Bhupesh Kumar said.

The court noted that four directors, including two who are now dead, conspired with the then bank manager and fraudulently furnished properties as collateral securities to obtain the financial assistance.

"It is found that Directors of Morgan Tectronics Ltd, PC Manchanda (deceased), Inderjeet Singh (deceased), P V Khullar and VV Khullar in criminal conspiracy with JBS Bedi (the then branch manager of Punjab and Sind Bank) dishonestly and fraudulently furnished properties as collateral securities in order to cheat the bank and to take huge financial assistance from bank which comes to Rs 6,18,50,540," it said.

All accused were held guilty of offences under sections 120B (criminal conspiracy) read with section 420 (cheating) and 471 (using as genuine a forged document) of the IPC.

The directors were also held guilty under section 120B read with section 468 (Forgery for purpose of cheating).

During arguments, the accused had denied all the allegations and claimed they were falsely implicated.

The former bank manager's counsel had contended that the investigating officer (IO) waited for retirement of the accused before concluding the probe and preparing the charge sheet.

The judge, however, rejected the contention, saying "it is found that to continue and conclude the investigation is the domain of IO and it is for the IO that when he considers that no further investigation is required and the chargsheet should be prepared. The court has no role to play in it."

According to CBI, a complaint was lodged by Chief Vigilance Officer of Punjab & Sind Bank alleging that M/s Morgan Tectronics Ltd, a manufacturing unit dealing in export of TV sets and other electronic items to Western Europe, Russia and Dubai, besides the domestic market, had applied for financial assistance under different heads to the tune of Rs 250 lakh and the same was forwarded by Bedi to the bank's zonal office.

It was alleged that the firm had also concealed the fact regarding actual outstanding amount of Rs 268.63 lakh in the audited balance-sheet and had shown it only as Rs 28.34 lakh.

"Since the concealment of facts by the company could have materially affected in the lending decision of the bank and that no credit facilities might have sanctioned, bank funds to extent of Rs 6.18 crore have been put at stake," the CBI had alleged.