Special Magistrate CBI Court, Indore on Monday found Harshad P Mehta of HM Proteins ltd Bhopal guilty in a fraud case and sentenced him to two years’ each Rigorous Imprisonment (RI) in two separate sections and a fine of Rs 2.50 lakh was imposed in each case.
Notably, the Central Bureau of Investigation (CBI), Bhopal Branch had registered a case under Sections 120 (B) and 420 of IPC and sections 13(2)r/w 13(1)(d) of PC Act on May 20, 2009 on the basis of source information against SK Nagpal, the then Sr Manager, Dena Bank, Azad Market Branch and others.
It was alleged that HM Proteins ltd, Bhopal was promoted by Harshad P Mehta. He is also the MD of the Company and he was the authorized signatory for the Company in conducting transaction in all the accounts maintained by the Company in various banks. HM Proteins ltd, had approached Dena Bank and Bank of India (hereinafter referred to as BOl) for getting finance for constructions of a Soya Oil Extraction Plant and for obtaining working capital for day to day operations.
Accordingly both these banks formed a consortium and extended credit facilities to the Company. The company availed export packing credit to the tune of Rs 8.23 crores from Dena bank and Rs 2.87 crores from Bank of India. The company used forged confirmation notes purportedly issued by Swastik Enterprises for availing EPC. The company also availed CC limits and other facilities and stopped its business and did not repay the outstanding amount and hence the company caused pecuniary loss to the tune of more than Rs 11.00 crores to Dena Bank and Bank of India by resorting to cheating and fraud.
A charge-sheet in the case was filed on August 23, 2004 in the court of Special Magistrate, CBI Court, Indore against Harshad P Mehta under Sections 420 and 471 of IPC.