STATE OF BIHAR Vs. SHISHIR KUMAR GHOSH

JUDGEMENT

(1.) F .I.R. initiated on a written report of B.L. Basyantri, Secretary, Bihar School Examination Board, Patna, in brief, is that he was Secretary to Bihar School Examination Board (hereinafter referred to as 'Board'). On 9.8.1990 accused Vinod Kumar Beria, a stock and share broker and a member of Magadh Stock Exchange Association represented before the Board that Canara Bank had settled Canstar Fund Mutual Fund 1990 Scheme for raising deposits (amount). He convinced for better return of the amount of Group Insurance of the Employees of the Board. There is further detail of the return of amount twice after five years, three time at the end of eight years and 4 time at the end of ten years. The amount can be withdrawn any time after completion of three years.

(2.) LITERATURE was also provided. On persuasion and entrustment with literature a proposal was submitted on 9.8.1990 by accused respondent S.K. Ghosh for investment of money in the Employees Group Insurance Account in CANSTAR. Thereafter the accountant A.K.Lehri placed the file with his suggestion to the then Finance Officer for re-investment of Rs. 35,00,000.00 in the aforesaid CANSTAR Scheme for five years. Thereafter the same was placed before Mathura Chaudhary, the then Secretary who recommended to place the file before the Chairman of the Board Dr Ram Naresh Trivedi. The matter was discussed and proposal was approved by the then Chairman himself on 13.9.1990 without there being even any decision of the Board in this regard. On 13.9.1990 the Board applied for purchase of 3.50 lacs unit of Canstar on the application form supplied by accused Beria together with cheque of Rs. 35,00,000.00 of Allahabad Bank, Patna in favour of CANBANK Mutual Fund, Canstar which were inadvertently returned unpaid. A letter was sent to Trustee, CANBANK Mutual Fund along with demand draft of Rs. 35,00,000.00. The Board was allotted 3.50 lacs Unit of Canstar bearing distinctive number 69739792 to 697737920 of Rs. 10 each but no share certificates were sent to the Board. A letter was sent to the Trustee of CANBANK Mutual Fund to expedite the issuance of aforesaid certificates in favour of the Board even then no certificate received. On 2.1.1992 this accused respondent further gave a note in the file of Assistant Secretary of the Board that out of the subsequent deposit of Rs. 6 lacs, a sum of Rs. 5 lacs if is deposited for six years in the Bank of Baroda, the deposit will be doubled benefiting the employees of the Board.

(3.) FURTHER it is alleged that the aforesaid accused Beria with an ulterior motive informed the then Chairman of the Board vide his letter dated 9.3.1992 that investment made by the Board as stated above in Canstar was supposed to be doubled in span of five years but same was done less than five years and he induced the then Chairman of the Board to convert the fund of Canstar to Candeep or other high growth income scheme as the fund will be getting double of the same money if reinvested and will get dividend or interest on 70 lacs instead of 35 lacs. Accused Beria was informed the decision of Chairman of the Board to convert all the Units (3.5 lacs) of Canstar into other high growth income scheme of Can Bank or other Mutual Fund for Rs. 70 lacs taken without any decision of the Board.