MMTC GM, Private Company Director Sentenced to Prison, Fined Rs 2.25 Lakh in Corruption Case Involving Rs 32 Crore Loss

(Judicial Quest News Network)

In a significant judgment, a Special Judge for CBI cases in Ahmedabad has convicted two individuals, including the then General Manager (GM) of MMTC, Ahmedabad, and the Director of a private company, M/s Aaryavart Impex Pvt. Ltd. (AIPL), in a high-profile corruption case. The court has sentenced the accused to 2 to 3 years of imprisonment and imposed a total fine of Rs. 2.25 lakh for their role in causing a massive financial loss of Rs. 32.06 crore to the state-run Minerals and Metals Trading Corporation Ltd. (MMTC).

The accused were found guilty of multiple offenses related to criminal conspiracy, misappropriation of property, breach of trust, and forgery in connection with fraudulent activities that took place in 2006.

Details of the Convictions:

• Shri B.S. Suryaprakash, the then GM of MMTC’s Ahmedabad branch, was sentenced to three years in prison and fined Rs. 1.25 lakh. He was convicted of criminal conspiracy, dishonest misappropriation of property, criminal breach of trust by a public servant, forgery of valuable security, and using forged documents as genuine.
• Shri Suresh Gadhecha, the then Director of M/s Aaryavart Impex Pvt. Ltd., was sentenced to two years in prison with a fine of Rs. 1 lakh. He was convicted for his involvement in criminal conspiracy and dishonest misappropriation of property.

The case, registered by the CBI on April 26, 2007, stems from a series of fraudulent transactions in 2006 where the accused conspired to issue delivery challans from a “non-running” book, using MMTC’s letterhead, to enable the illegal delivery of imported silver and mint silver to AIPL without collecting payment. These forged delivery orders allowed the accused to siphon off silver without paying for it, resulting in a loss of over Rs. 32 crores to MMTC, while the accused benefited financially from the fraud.

The investigation revealed that Suryaprakash, in his capacity as the GM of MMTC, colluded with Gadhecha, a bullion dealer, to orchestrate the fraudulent transactions. The two issued fake delivery challans and misused MMTC’s authority to facilitate the delivery of silver to AIPL without receiving payment, thus causing substantial financial harm to MMTC.

After an extensive investigation, the CBI filed a charge sheet against the accused on January 1, 2009, and the case proceeded to trial. Following the court proceedings, the two accused were found guilty of all charges, leading to the court’s sentencing.

The court’s verdict marks an important step in holding public servants and private individuals accountable for corruption, financial misconduct, and the abuse of authority. It also highlights the efforts of the CBI to combat financial frauds in state-run corporations and restore public trust.

Ongoing Efforts by the CBI: The conviction of Suryaprakash and Gadhecha is a part of the CBI’s continued commitment to tackling corruption and financial crimes within both public and private sectors. The agency has been proactive in investigating and prosecuting cases involving public servants and corporate fraudsters who exploit their positions for personal gain, resulting in significant financial loss to the public exchequer.

The sentencing also serves as a deterrent to others involved in similar fraudulent activities, reinforcing the message that financial crimes will not go unpunished. The CBI’s work in bringing the accused to justice is a testament to its role in safeguarding the integrity of public institutions and ensuring that corruption is eradicated at all levels.