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Harshad Mehta gets bail in ONGC scam

A Delhi court has granted bail to Harshad Mehta, prime accused in the multi-billion rupee bank security scam.

The bail was granted on Monday by special Central Bureau of Investigation judge Ajit Bharihoke in the case pertaining to the cheating of the Oil and Natural Gas Commission. The accused was directed to furnish a bail bond of Rs 50,000 and a surety of the same amount.

The court also granted bail to his brother Ashwin Mehta, accused in the same case, on the same terms and condition.

The court, however, kept pending the bail application of the member (finance) of the ONGC, accused in the same case, since he was not present in the court because of indisposition.

Harshad Mehta and other accused in the case allegedly connived with the officials of the ONGC and the United Commercial Bank and got the ONGC to transfer Rs 7.3 billion to his personal account, which he utilised to make huge undue monetary advantages in the stock market.

The stockbroker and his brother were both present in the court when the bail was granted to them.

The court fixed august 27 for orders on the bail application of the member (finance) of the ONGC.

In another case, the same court fixed August 30 for hearing the case pertaining to the cheating of the Indian Farmers' Fertilisers Corporation Ltd to the tune of Rs 330 million of its surplus fund. The amount was allegedly invested on instructions by Harshad Mehta with the United Commercial Bank at a lower rate of interest causing a loss of Rs 1.5 million to the IFFCO.

It is further alleged that Rs 40 million was illegally diverted into his personal account by his Delhi-based representative M D Khandelwal, who has turned approver.

Harshad Mehta is facing trial in five case in Delhi courts, out of a total of 24 cases, pending against him in connection with the security scam of 1992.