Former MP fined Rs. 5 lakh

Raised funds for his housing company illegally A former Member of Parliament who illegally raised funds for his housing company in violation of the Securities and Exchange Board of India Act has been fined Rs.500000 by a Sessions court which took a lenient view on the ground that he was 78-years-old and had no criminal antecedents. The court also noted that of the Rs.1.180000000 raised in 1997-98, the Oriental Housing Development Finance Corporation (OHDFC) in which H. S. Hanspal was a member, had refunded an amount of Rs.89.2200000 in 2000 to investors. “Considering the mitigating factors that the company accused had refunded the amount to the tune of Rs.89.2200000 in the year 2000 itself and the fact that convict is an old person of 78 years of age and has no previous criminal antecedents, I am of view that the convict deserves a lenient view and ends of justice will be met if he is burdened with substantial amount of fine, thus, I hereby impose a fine of five00000 each on both the convicts [Hanspal and OHDFC],” Additional Sessions Judge Pawan Kumar Jain said. In its complaint filed on January 21, 2003, SEBI alleged that the accused had floated the Collective Investment Scheme without getting it registered with SEBI. Mr. Hanraj, in his defence, said he was not involved in the day-to-day affairs of the company.