Former Minister Kedar Convicted In Multi-crore Bank Scam By Nagpur Court
Sunil Kedar, former Maharashtra minister and Congress MLA, was found guilty in a Rs 150-crore cooperative bank scam. He faced a five-year rigorous imprisonment and a Rs 12.50 lakh fine. Five others received the same sentence and fine, while three were acquitted due to insufficient evidence. Failure to pay the fine could lead to an additional year of imprisonment, as per the court.
Kedar, chairman of Nagpur District Central Cooperative Bank during the 2002 scam, allegedly diverted bank funds for the purchase of government securities by private entities, resulting in significant financial losses. Companies from Mumbai, Kolkata, and Ahmedabad were accused of purchasing government bonds worth Rs 125 crore using bank funds, failing to repay, leading to a total estimated scam value of Rs 150 crore with bank interests.
The investigation, initiated by Kishore Belle from the state criminal investigation department, saw the charge sheet filed in November 2002. Kedar and 11 others faced charges including criminal breach of trust, misappropriation, forgery, and criminal conspiracy under various sections of the IPC.
The scam involved funds purportedly used to purchase government bonds by securities firms in compliance with RBI regulations. Allegations emerged that these firms, including Home Trade Securities and Giltedge Management, did not utilize the funds for the intended purpose, leading to the misappropriation.
Kedar's arrest followed a counter-FIR by the cooperative department, accusing him of connivance with brokers and bank officials in diverting funds. Despite an initial FIR lodged by Kedar and bank officials alleging fraud by the securities firms, subsequent investigations led to Kedar's arrest for embezzlement.
