TWO YEARS RIGOROUS IMPRISONMENT TO THEN EXECUTIVE DIRECTOR AND TWO OTHERS OF PUNWIRE IN A CBI CASE

The Special Judicial Magistrate, CBI, Mohali (Punjab) has today sentenced  Ved Prakash, Former ED, PUNWIRE; Sh. Ashok Jerath, Former AGM, PUNWIRE and  N.K. Bhambri, Former Statutory Auditor, to undergo 2 Years Rigorous Imprisonment with fine of Rs.7,000 each.

CBI had registered the instant case on 21.10.2002 on the directions of the Hon’ble Supreme Court of India passed on 09.05.2002 in SLP No. 583/2002 on the allegations of large scale embezzlement of funds in PUNWIRE. Accordingly, CBI took over 20 FIRs of Police Station Mohali, Punjab for investigation.

The present case was reproduction of one FIR No. 236/2001, earlier registered at Police Station Mohali. It was alleged in the said FIR 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. It was further alleged that  Ved Prakash, Executive Director who was authorized to issue cheques upto 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(approx). 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. It was also alleged that the cheques beyond Rs. 2 Lakh were unauthorized and that the company was in a total financial crisis.

After investigation, chargesheet was filed on 29.08.2008 against the accused. The charges were framed against the accused on 18.11.2010.

The Trial Court found the accused guilty and convicted them.