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Harshad Mehta seeks discharge in ONGC funds scam case

'Big bull' Harshad Mehta and his brother Ashwin Mehta on Wednesday sought discharge from the Rs 6.80-billion ONGC funds security scam case in the Delhi high court as their counsel said that a Bombay court's order discharging them in a an identical case, was upheld by the Supreme Court.

Mehta brothers' counsel Dinesh Mathur and Rabeka John told Justice R S Sodhi that the apex court had recently upheld the order of a Bombay court discharging them in a security scam case related to UCO Bank funds, having identical facts.

Justice Sodhi, who had earlier issued notice to the CBI on their appeal challenging framing of charges against them in the case by a special court, posted the hearing to November 1 with the direction that the apex court judgement be placed before him.

A special CBI court had framed charges against the brothers, UCO Bank official V N Dosthali and ONGC official M C Nawalakha for criminal conspiracy, criminal breach of trust and corruption.

According to the CBI chargesheet ONGC's Rs 6.80-billion surplus funds were made available by these officials to Mehtas between 1989-91 illegally, which allegedly was invested by them in securities.

Mehtas' counsel in the petition had contended that that no fraud was committed by them and the entire 'surplus' amount with ONGC was returned to it along with due commission.

They claimed that the Bombay court had in the UCO Bank funds case held that 'if no loss is caused to the institution and due commission is paid to it, it would not amount to a conspiracy or fraud'.

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