SC setback for #HCL Infosystems in criminal case

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In a setback to HCL Infosystems, the Supreme Court on Tuesday held that criminal proceedings initiated against the company in a Ghaziabad court will continue.

The special court has the jurisdiction to try the company in a case related to alleged irregularities in the award of a contract to supply computer hardware and related services under the 2009 National Rural Health Mission (NRHM) scam in Uttar Pradesh, it held.

A bench comprising justices V Gopala Gowda and Adarsh Kumar Goel upheld the Allahabad High Court’s order that the special judge can continue proceedings against the accused even after the death of public servant and even if there was no charge under the Prevention of Corruption Act, 1988. According to the CBI, NRHM funds to the tune of Rs 9,000 crore, which were allocated to UP between 2005-2006 by the health ministry, were diverted and allegedly misappropriated on a large scale. The CBI enquiry was ordered by the Lucknow bench of the Allahabad HC in November 2011.

The CBI had conducted searches at more than 150 places across the state and arrested a number of suspects.

While the agency had not named HCL as accused in its first chargesheet, the second chargesheet named it as co-accused. One of HCL’s employees (vice-president) has also been named in the chargesheet. HCL was named as co-accused for offence of conspiracy along with a public servant who was charged under the PC Act in the second supplementary chargesheet filed in December 2011.

HCL had argued the firm had nothing to do with the scam and the case should be tried in a regular court rather than the special court set up to hear the cases related to the NRHM scam.

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