- (1.)This appeal has been preferred under Section 10 of the Special Court (Trial of Offences relating to Transactions in Securities) Act, 1992 (for short "the Special Court") against the Judgment and Order dated 20th January, 2004 passed by the Special Court constituted under the said Act in Special Case No.1 of 1997 in R.C. No.9 (BSC)/94/BOM.
(2.)In the wake of report of enquiry committee constituted by the Reserve Bank of India under the Chairmanship of Shri Janki Raman to enquire into the allegation of unauthorized diversion of public funds belonging to certain public sector banks and financial institutions by employees of such banks and institutions in collusion with some brokers, the Act was enacted for constitution of a Special Court for trial of criminal offences in respect of transactions during the period 1st April, 1991 to 6th June, 1992 as provided under the Act. The object of the Act was speedy recovery of public money allegedly diverted in security transactions and to punish the guilty and to restore confidence and credibility of the banks and the financial institutions.
(3.)The Special Court was to try notified persons jointly with other connected persons. One of such named persons was the broker- Harshad S. Mehta who died during the trial. The appellant was Assistant Manager of the UCO Bank, Hamam Street Branch who was jointly tried with Mehta on the allegation that during the period 12th March, 1991 to 24th April, 1991, he diverted funds of the Engineering Export Promotion Council (for short "EEPC") amounting to Rs.7.75 crores to the private account of Harshad S. Mehta. Though the said funds were transferred back to the EEPC, conduct of the appellant amounted to offences under Sections 120-B, 409, 467, 471 of the Indian Penal Code and Sections 13(1)(c) and (d) of the Prevention of Corruption Act, 1988.