Face2News/New Delhi
The Special Judge, for CBI cases, Rouse Avenue Court, has sentenced three accused including Sh. Alok Sharma, then Managing Director of a private firm M/s Equipment Conductor and Cables Ltd. (ECCL); Sh. Mashkoor Ahmed, then Senior Executive Director (Development) of National Small Industries Corporation (NSIC) and Sh. B.L. Malhotra, then Executive Director all to undergo 1-7 years Imprisonment with total fine of Rs. 3.22 crore in a bank fraud case.
Accused Alok Sharma, then Managing Director of ECCL was sentenced to seven years of Rigorous Imprisonment (RI) with fine of Rs. 1.10 crore; Sh. Mashkoor Ahmed, then Senior Executive Director (Development) & Sh. B.L. Malhotra, then Executive Director, both of NSIC, each was sentenced to undergo one year of imprisonment with fine of Rs. 1 lakh each. The Court imposed a fine of Rs. 2.10 crore on the accused private firm M/s ECCL, out of which Rs. 2 crore is to be paid to NSIC as compensation.
CBI had registered the instant case on 20.03.2003 against Mashkoor Ahmed, Alok Sharma and other unknown persons on allegations of corruption etc.
(SUBHEAD)The investigation revealed that ECCL, a Small-Scale Industrial Unit (SSI) had borrowed funds from NSIC under the Raw Material Assistance Scheme and Bill Discounting Scheme. Sh. Alok Sharma, then Managing Director of ECCL, entered criminal conspiracy with Sh. Mashkoor Ahmed, then Senior Executive Director (Development) of NSIC and fraudulently availed credit facilities from NSIC. Between 1994 and 1999, Sh. Mashkoor Ahmed abused his official position to sanction multiple credit limits to ECCL, totaling ₹5.90 crores, despite the increasing outstanding amounts against ECCL. By 31.03.2001, the outstanding amount had reached ₹9.10 crores.
It was further alleged that ECCL pledged shares worth ₹1.10 crores as security, which were non-transferable due to a lock-in period, rendering them invalid as security. ECCL also executed fraudulent Powers of Attorney to discount bills from Andhra Pradesh State Electricity Board (APSEB) and Uttar Pradesh State Electricity Board (UPSEB). ECCL misrepresented the outstanding bills from APSEB and UPSEB as ₹352.63 lakhs and ₹138.47 lakhs, respectively, while actual outstanding amounts were either much lower or non-existent. ECCL dishonestly withdrew the Power of Attorney from UPSEB, secured payments directly, and caused substantial financial losses to NSIC.
The investigation concluded that ECCL dishonestly availed undue pecuniary advantages totaling ₹9.10 crores, while NSIC suffered a corresponding loss.
After completion of investigation, CBI filed a chargesheet on 01.07.2005 against accused including those convicted/ sentenced by the Court.
