The Delhi High Court has sentenced Atul Kumar Rai, the chief executive officer and managing director of IFCI (formerly Industrial Finance Corporation of India), for a month in jail . The court awarded the sentence after it held Rai guilty for contempt of court and defiance of its orders.
The court has also imposed a fine of Rs 5 lakh on IFCI and sentenced its law officer to a month’s imprisonment along with Rai.
“Considering all the facts and circumstances…..this is a fit case where they must be sent to jail,” Justice PK Bhasin said in his order dated March 19, 2012.
Rai did not respond to calls, messages and e-mail sent by HT.
In his order, Justice Bhasin clearly stated that no leniency would be shown towards contempt.
“The litigants have started gathering the impression that the moment apology is tendered…the court would melt down and pardon them. That kind of an impression from the minds of the litigating public needs to be washed off,” said Justice Bhasin in his order.
The case and subsequent court orders relate to the winding up of telecommunications firm Koshika Telecom to which IFCI was a creditor. Before the high court’s order to wind up Koshika a DRT (debt recovery tribunal) had already auctioned some of its (Koshika’s) assets and deposited the sales proceeds of R12 crore with IFCI Ltd.