Mumbai: Airline director gets 1-yr-jail, Rs 6.5L fine for cheating

A special Central Bureau of Investigation (CBI) court has convicted East West Airlines, its director and a former employee of Vijaya Bank in a cheating case of 1998 in which the Indian Oil Corporation Ltd (IOCL) was cheated of Rs1.73 crore.

Staff ReporterUpdated: Thursday, December 22, 2022, 11:20 AM IST
article-image
Representative pic

Mumbai: A special Central Bureau of Investigation (CBI) court has convicted East West Airlines, its director and a former employee of Vijaya Bank in a cheating case of 1998 in which the Indian Oil Corporation Ltd (IOCL) was cheated of Rs1.73 crore.

The IOCL had been delivering fuel to the airline against payment through demand draft (DD). In the fraud, it delivered fuel worth Rs1.73 crore on receiving faxes of copies of demand drafts, but the original demand drafts were not sent to IOCL as promised. It was found that the demand drafts were cancelled after sending faxes. Later, they made representations to IOCL that they will send the originals, thus inducing the undertaking to part with the fuel.

The IOCL General Manager had then made a complaint to CBI’s Economic Offences Wing. A probe found that Jayanand Shetty, an officer of Vijaya Bank, Brigade Road branch, Bangalore, had allowed other accused to procure five DDs without making any entries in the account of the airline. It also noted that he had not charged commissions for the issuances of DDs.

The prosecution had examined 34 witnesses in the case that was presented before the court in 2001. Special Judge SU Wadgaonkar found the airline guilty of cheating and criminal conspiracy and directed it to pay Rs50,000 as fine. Out of the nine accused in the case, four including the main accused had died. The airline’s director Faizal Wahid was sentenced to one year in jail and a fine of Rs6.5 lakh. Mr Shetty was also sentenced to one-year in prison and imposed a fine of Rs90,000. Some of the accused were acquitted, too.

Judge Wadgankar said in the judgment that the offence comes in the nature of economic offence. Record indicates that substantial amounts arising out of the cheating came to be recovered, it said. It decided to show leniency to the director Wahid of the airline, observing that he had played a minimum role in commission of the offence as compared to the principal accused Shiabuddin Wahid who is no more. It said then that considering the facts of the case, he is entitled to leniency. 

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Mumbai: Tweet demanding sequel to 26/11 movie raises concerns about terror attack, police probe on

Mumbai: Tweet demanding sequel to 26/11 movie raises concerns about terror attack, police probe on

As MVA wins 3 out of 5 MLC seats, Saamana editorial mounts attack: 'Educated people rejected...

As MVA wins 3 out of 5 MLC seats, Saamana editorial mounts attack: 'Educated people rejected...

Mumbai: 18-year-old girl receives unilateral hand transplant, first of its kind in India, claims...

Mumbai: 18-year-old girl receives unilateral hand transplant, first of its kind in India, claims...

Lagos to Mumbai, Nigerian research student’s love affair with India

Lagos to Mumbai, Nigerian research student’s love affair with India

Navi Mumbai: Social activist demands public suggestion for the NMMC budget

Navi Mumbai: Social activist demands public suggestion for the NMMC budget