The Delhi High Court on Tuesday issued a notice to the prosecution following an appeal by Madhya Pradesh Congress MLA Rajendra Bharti, who is challenging his conviction and a three-year jail sentence in a long-running cheating and forgery case.
Justice Swarana Kanta Sharma, presiding over the matter, has sought a response from the prosecution and scheduled the next hearing for April 15. The case involves allegations of tampering with bank records to secure illegal interest payments between 1998 and 2011.
On April 1, a trial court convicted Bharti under several sections of the Indian Penal Code (IPC), including Section 120B (criminal conspiracy), 420 (cheating), 467 (forgery of a valuable security), 468 (forgery for cheating), and 471 (using a forged document as genuine).
Following the conviction, the court on April 2 sentenced Bharti—the former chairperson of the Zila Sahkari Krishi Aur Grahmin Vikas Bank—to three years of rigorous imprisonment. However, the trial court granted him bail for 60 days and suspended the sentence to allow him to approach the High Court.
In its sentencing order, the trial court emphasized restitution over prolonged incarceration, imposing a fine of ₹1 lakh on Bharti. This amount is to be paid to the Madhya Pradesh Sahkari Krishi Avem Gramin Vikas Bank Seemit, Bhopal, as the original complainant bank is currently under liquidation.
The prosecution’s case dates back to August 1998, when Bharti’s late mother, Savitri Devi, deposited ₹10 lakh in a three-year fixed deposit (FD) at the Zila Sahkari Krishi Aur Grahmin Vikas Bank in Datia. The deposit was made in the name of a family-run trust at an interest rate of 13.5 per cent per annum.
According to the prosecution, Bharti and his associates conspired to extend these high-interest payments well beyond the original 2001 maturity date. They allegedly used correction fluid and overwriting to physically tamper with bank records, extending the term to 10 and 15 years. This allowed the trust to continue withdrawing interest at the 13.5 per cent rate until 2011, even as market rates dropped significantly.
The trial court noted that Bharti, Raghuvir Sharan Prajapati, and the now-deceased Savitri Devi entered into this conspiracy to “cheat the complainant bank by continuing to draw interest at a much higher rate.”
The case was originally registered in Datia, Madhya Pradesh, but was transferred to Delhi by the Supreme Court in October 2023. The transfer was ordered following allegations that attempts were being made to intimidate defense witnesses in the local jurisdiction.
During the trial, Bharti contended that the prosecution was “politically motivated” and that he was being “politically targeted.” However, the trial court dismissed these claims as “speculation,” stating that the MLA failed to provide evidence of any false implication or political vendetta.
While proceedings against Bharti’s mother were abated following her death in 2019, the court found sufficient evidence to hold Bharti and Prajapati accountable for the financial irregularities.
