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Prabhu seeks clean chit in WIFSL cheque-bouncing case

Sandesh Prabhudesai in Panaji

Speculation is mounting as to whether the charges of cheating Goan investors of Rs 12 million will be dropped against Union Environment Minister Suresh Prabhu of the Shiv Sena. The verdict in the case filed by investors in a Panaji court is to be delivered on August 21.

The case pertains to bouncing of cheques issued by Bombay-based Western India Financial Services Limited to its depositors. Prabhu was the founder-chairman of the non-banking finance company.

Prabhu’s counsel has forcefully argued that the Union minister was neither the chairman nor a director of the company when the cheques were issued in 1996. The submission is that Prabhu resigned as chairman a few days before he joined Atal Bihari Vajpayee's council of ministers. The counsel has sought that the attempt to implicate Prabhu be stalled.

Prabhu contends he was implicated in the case merely because cheating charges against a minister are bound to make news.

Prabhu and five of his director-colleagues in WIFSL (who are apparently at large) are also facing a police enquiry in a separate criminal case lodged by an investor for cheating and fraud. The court hearing is on.

His counsel Ghulam Vahanvatty claims that Prabhu had resigned from the company in May 1996 and his resignation was also accepted by the board of directors in November. Citing several judgments, he contends that such resignations come into effect at once.

Gurudas Tamba, the investors' counsel, however, expects the court to rely more on documentary evidence which, he says, prima facie proves Prabhu’s direct involvement in the case.

Prabhu's resignation was notified only in March 1997, he says, asking why it was not made public if he had resigned a year earlier.

He also dismisses Prabhu’s contention of malafide intentions in implicating a public figure. The case was filed when Prabhu was not a minister, he points out.

The documentary evidence that Prabhu has submitted to the court is a letter dated July 2 this year issued by Maharashtra's assistant registrar of companies. The letter talks about making a correction in Prabhu’s resignation date.

But Tamba suspects its credibility. The court has has overruled his charge that it was sought either by bribing or through political pressure. Judicial Magistrate C Fernandes has accepted his contention that the assistant registrar was also not sure about Prabhu’s resignation date.

Tamba wonders why the letter was sought in July this year to correct Prabhu’s resignation date when the case was filed in March 1997.

Meanwhile, Goa's Chief Minister Pratapsing Rane has announced that he would try to enact a legislation to penalise unscrupulous NBFCs during the ongoing assembly session, once the Centre approves his proposal. If not, then an Ordinance would be issued, he added.

Besides the WIFSL case, over 20 such complaints have come to light in the tourist state where bogus NBFCs have had duped Goan investors to the tune of Rs 1 billion till date. Most of these companies are run by Gulf-based, cash-rich Non-Resident Indians.