Mumbai: A special court on May 12 convicted three bankers who connived with big bull Harshad Mehta to cheat a nationalised bank of Rs 20 lakhs by over charging rate of interest in call money transactions in 1991.

M S Srinivasan, funds manager of State Bank of Saurashtra, Vinayak Deosthali, assistant manager of United Commercial Bank and Ashok Ugrankar, Manager of United Commercial Bank were convicted by designated judge A R Joshi.

The judge opined that the charge of conspiracy against the accused was proved. He held the trio guilty of draining out public funds by crediting Rs 20 lakhs in the account of Harshad Mehta with State Bank of Saurashtra. The court would decide on May 13 on the quantum of punishment.

As regards Mehta, the case was abetted since he passed away on December 31, 2001.

However, three other accused employed with State Bank of Saurashtra were acquitted. They were B C Patel, B P Dash and M S Reddy. Initially, sanction to prosecute them was refused by competent authority but later it was accorded. They were let off on technical grounds.

The case of the prosecution was that State Bank of Saurashtra lent Rs 920 crore to UCO bank in several call money transactions between April 28, 1991 and September 16, 1991. In the records of State Bank of Saurashtra the interest rate of lending was shown as 15 per cent while in UCO bank books it was inflated and indicated as 31 per cent. This excess 16 per cent interest went to Harshad Mehta's account with State Bank.

UCO bank paid the money in two cheques, one of the principal amount and 15 per cent interest and the second containing 16 per cent excess interest rate.