CBI court sentences three men to two years RI in embezzlement case
New Delhi, Nov 29: The CBI Court in Punjab’s Mohali on Monday sentenced three people, including a former statutory auditor of a firm, to two years Rigorous Imprisonment (RI), in a case of embezzlement of funds, agency said on Monday.
Besides, the court also imposed a fine of Rs 7 thousand each on all.
The convicts included Ved Prakash, a former Executive Director of Punwire; Ashok Jerath, a former Assistant General Manager Punwire and NK Bhambri, ex-statutory auditor.
CBI had registered the case on October 21, 2002, on the directions of the Supreme Court passed on May 9, 2002, on the allegations of large scale embezzlement of funds in Punwire. On this basis, CBI took over 20 FIRs from Mohali Police Station for investigation, said CBI.
The present case was reproduction of one FIR which was earlier registered at Mohali police station. In the FIR, it was alleged that Punwire had gone into liquidation because of large-scale cheating and embezzlement of funds of the company by its own officials and also because of mismanagement in the company. Ved Prakash, who was allegedly authorized to issue cheques up to the limit of Rs 2 lakh only, issued cheques of much higher amount to the creditors of the company amounting to Rs 132.56 crore, said CBI.
The accused were fully aware of the precarious financial condition of the company at the time of issuing cheques and the issuance of such cheques put the company under huge financial liability and multifarious litigation because of bouncing of cheques.
The cheques beyond Rs 2 lakh were allegedly unauthorized and that the company was in a total financial crisis.
On the basis of the probe, a chargesheet was filed on August 29, 2008, against the accused. The charges were framed against the accused on November 18, 2010. The Trial Court found the accused guilty and convicted them.
