The Bombay High court convicted six people in the 1992 securities scam case in which the coterie of Harshad Mehta defrauded National Housing Bank of Rs 700 crore. 24 years later, the court convicted his brother Sudhir Mehta and five others in the case. Along with him, those who were convicted include two bank officials – Coodli Ravikumar, assistant general manager with the National Housing Bank; and R Sitaraman, an officer with the State Bank of India; and assistant manager with the bank Seetapathy Suresh Babu.
Justice Shalini Phansalkar-Joshi refused pleas for leniency by the accused, who claimed to have suffered for over two decades and had health problems. The court held them guilty under various provisions of the Indian Penal Code relating to cheating, forgery and criminal breach of trust, and under the Prevention of Corruption Act. They have been sentenced to jail terms ranging from six months to four years. The court also imposed fines of Rs 11.95 lakh on the accused.
The case against Harshad Mehta was closed after his death on April 23, 2002. The 1992 securities scam involved officers of NHB, SBI and other banks and financial institutions, “illegally siphoning off crores of funds of the institutions for speculative returns by systemic and deliberate abuse of the system”