MM TAX CLUB

The Special Judge for CBI cases, Ghaziabad  has sentenced Sh. K. K Bhardwaj, then Branch Manager, UCO Bank, Taharpur Bhabisa Branch, Muzaffarnagar (U.P.) to 05 years Rigorous Imprisonment with a fine of Rs. 70,000/-  for offences of  criminal conspiracy,  misconduct, cheating, forgery, etc.

Central Bureau of Investigation (CBI) had registered a case on 31.03.1993 against then Branch Manager, UCO Bank, Taharpur Bhabisa Branch, Muzaffarnagar UP and unknown persons. It was alleged that accused, while posted and functioning as Branch Manager, UCO Bank, in the aforesaid branch during the year 1991-92 entered into criminal conspiracy with a private person with the object to commit the offence of criminal misconduct, cheating and forgery. The private person had opened two SB Accounts in two fictitious names i.e. Ashok Kumar Sharma and Narendra Kumar Goel in the said Branch of the bank. Both the aforesaid accounts were dishonestly allowed to be opened by the accused Branch Manager.

Subsequently, it was alleged that Rs. 27 lakh (approx) were deposited on 24.12.91 and 04.11.92, in the account opened in the name of Ashok Kumar Sharma. This was later on used to prepare drafts in the names of three persons through a cheque presented by the said private person. Similarly Rs. 21 lakh were deposited in the other account opened in the name of Shri Narendra Kumar Goel which was used to issue 8 drafts of various amounts by accused Shri K. K. Bhardwaj. These drafts were issued by said Branch Manager who also issued fake certificates certifying that these drafts were issued from NRE account and the funds had been received in convertible Foreign Exchange.

On the basis of the certificates, issued by accused Shri K. K. Bhardwaj, Branch Manager, UCO Bank, the persons who received the amount by way of above demand drafts claimed exemption in Income Tax under Foreign Exchange (Immunities) Scheme, 1991 under which any gift received from Non Resident External Account had immunity from Income Tax.

After investigation, CBI filed chargesheet on 23.02.1996 against Shri K. K. Bhardwaj and the said private person.

During trial proceedings, Hon’ble Trial Court also took cognizance against five additional accused persons who happened to be Chartered Accountants. Subsequently, the Hon’ble High Court Allahabad vide order dated 02.03.2016 stayed the trail proceeding in respect of an additional accused which was vacated on 18.12.2020.

As, charge-sheeted accused private person died during trial, hence charges against him were abated. Trial in respect of other charge-sheeted accused was on different footing as compared to the trial in respect of additional accused persons, the Trial in respect of accused Shri K. K. Bhardwaj was separated by the Trial Court from additional accused persons (five Charted Accountants) in August, 2023.

After completion of trial against accused Shri K. K. Bhardwaj, the Trial Court found the accused guilty and sentenced him accordingly.