Conceding that it was becasue of an earthquake in Gujarat that the telecast of a commissioned programme was cancelled, a Special Anti-Corruption Bureau (ACB) court on December 20 acquitted Govind Swarup, former managing director of Film City, and Ashok Shukla, the former financial advisor, for misappropriating the funds of the Maharashtra Film Stage and Cultural Development Corporation (MFSCDC), commonly known as Film City, in 2004 to obtain monetary benefit of Rs. 15 crore for themselves. A third accused, producer Shahab Ahmed, died during the pendency of the trial and so the case against him was abated. The judgement was delivered nearly 18 years after the initial charges were filed.
Additional sessions judge S.S. Nagur noted that while the Corporation did suffer losses, the prosecution failed to prove “dishonest intention” or “criminal conspiracy”. “The oral and documentary evidence on record does not prove that the act of accused… was to cause misconduct or commit fraud,” the judge said, adding, “It is only the non-telecast of the programme Hum Ek Hain, which caused the loss… The evidence on record does not show any such intention on the part of accused nos. 1 to 3 to cause loss by committing fraud to the organisation. On the contrary, it was to conduct the programme Hum Ek Hain at large scale and to gain profit from the programme.” The judge further noted that a witness had submitted that because of the national mourning and the scale of the disaster, the live telecast was cancelled at the last minute. “Before the scheduled telecast was cancelled, all formalities including execution of documents and payments to artistes were completed,” the judge observed.
The prosecution’s case was related to cultural programme Hum Ek Hain, scheduled for a live telecast on January 26, 2001. The event was to be a star-studded gala across five major cities. The prosecution alleged that the accused entered into unauthorised agreements with private entities including Montage (owned by Shahab Ahmed). Public funds and fixed deposits totalling crores of rupees were allegedly illegally pledged as bank guarantees. A private joint bank account was opened to divert sponsorship money from major TV networks like Zee TV and Sony. The Corporation suffered a loss of around Rs. 6.42 crore due to financial mismanagement. It was alleged that Swarup in collusion and conspiracy with Ahmad and Shukla caused loss to the Corporation by misappropriation of funds, which amounted to criminal misconduct. The trial in the case commenced in 2012. A total of 33 witnesses deposed.