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'Big Bull', 5 others to face trial from July 20

A local court has ordered 'Big Bull' Harshad Mehta, his brothers Ashwin, Sudhir and Hitesh and two associates Niranjan Shah and Jairaj Java, to appear in person from July 20 to face day-to-day trial in a case filed by the Enforcement Directorate for allegedly using $600,000 in the securities scam in early 1990s.

Additional Chief Metropolitan Magistrate Usha Iyer rejected the ED's plea to defer the trial as it proposed to file 31 complaints, which should be heard with the pending complaint because documents and evidence were common to both.

The magistrate observed that 31 complaints proposed to be filed by ED were not before the court at this stage and hence she was inclined to hear the pending complaint in view of the Supreme Court guidelines to expedite the trial.

Harshad's counsel Mahesh Jethmalani and Pranav Badhekha submitted that they reserved their right to oppose ED's 31 complaints at the appropriate time. However, at this stage they were leaving to the court's discretion in regard to commencement of trial in the pending complaint.

However, they contended that the 31 complaints were in respect of separate accounts operated by Niranjan Shah which were unearthed during a raid by the income tax department in 1993. In none of these transactions, they argued, Harshad was involved at any stage. Hence ED's plea to club these cases with the pending complaint was without any substance.

ED counsel, Arun Gupte, however, clarified that Niranjan was a common factor in these accounts and that he had either received money through hawala (money laundering) or disbursed foreign exchange to various persons.

ED has urged before the court that it had collected ample evidence to show that the 'Big Bull' Harshad Mehta, his brothers and associates had allegedly received huge amounts through hawala transactions and used the money in the securities scam.

In the pending complaint, ED alleged that Harshad by utilising $400,000 which formed part of the hawala money bought shares worth Rs 11.1 million. These shares have been attached. Besides, there were instances to show the use of remaining $200,000.

ED's application for deferring the hearing of pending complaint comes in the wake of Supreme Court ruling that the hearing of the complaint should be expedited. The apex court so ordered because Jivraj Java had sought permission to go abroad for business which the Supreme Court refused.

However, Java secured the permission of the Bombay High Court to leave for a foreign country on a business tour for three months. Accordingly, he has already left the country after seeking the exemption from the court.

ED pleaded that in view of this development, the Supreme Court order did not hold good and hence the trial need not be expedited. As regards three-month limit imposed by the high court on Java's stay abroad, ED submitted obtaining the permission of the court could also extend the period.

Java and Shah have not objected to ED's plea to defer the pending trial against them.

However, the magistrate felt the apex court order gained precedence over the rest. ED's argument of intending to file 31 fresh complaints was not valid at this stage because the cases were not before the court.

PTI

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