Advocate Ajay Kandhar said Ashwin Mehta and Sudir Mehta alongwith UCO bank's ex-CMD K Margbandhu and former senior officer Venkat Krishnan have been convicted in the case.
Delivering the order on Thursday, Justice D K Deshmukh sent the Mehta brothers to three months' imprisonment and fined them Rs two lakh each.
The court, however, has allowed an appeal against the conviction. The court also sent UCO bank's former officials to six months' imprisonment and fined them Rs three lakh each.
The case, registered in 1992, refers to diversion of nearly Rs 50 crore (Rs 500 million) to two finance companies -- Mazda Leasing and Growmore --which later found its way to the stock market.
The bank officials had helped the Mehta brothers in illegal discounting of bills and the prosecution claimed that the diversion of funds was a gross violation of regulatory guidelines regarding bank funds.
The trial in the case began in 1993. The fraud was a part of Rs 5,000 crore (Rs 50 billion) security scam that came to light in 1991. The mastermind of the scam, Harshad Mehta, died on December 31, 2001.
