In a verdict delivered nearly two decades after the initial allegations, a Special Anti-Corruption Bureau (ACB) court in Mumbai has acquitted two former top officials of the Maharashtra Film, Stage and Cultural Development Corporation (MFSCDC), popularly known as FilmCity. The case, which revolved around the alleged misappropriation of funds amounting to a potential benefit of Rs 15 crore, finally reached its conclusion on Saturday.
The Core of the 18-Year-Old Allegations
The prosecution's case was built around a grand cultural programme titled "Hum Ek Hai", which was scheduled for a live telecast on January 26, 2001. The event was planned as a major celebration for India's 50th Republic Day, with star-studded galas across five cities. The state alleged that the accused officials—Govind Swarup, the 79-year-old retired IAS officer and former managing director, and Ashok Shukla, the 73-year-old former Financial Advisor—entered into unauthorized agreements with private entities.
It was claimed that public funds and Fixed Deposits worth crores were illegally pledged as bank guarantees. Furthermore, the prosecution argued that a private joint bank account was opened to divert sponsorship money from major networks like Zee TV and Sony. A third accused, Shahab Ahmed (owner of M/s Montage), passed away during the trial, leading to the abatement of the case against him. The corporation reportedly suffered a direct loss of approximately Rs 6.42 crore due to the alleged financial mismanagement.
The Court's Reasoning for Acquittal
Additional Sessions Judge SS Nagur, in a detailed 135-page judgement, underscored a critical legal distinction. While acknowledging that the corporation suffered financial losses, the court ruled that the prosecution failed to prove the essential elements of "dishonest intention" or "criminal conspiracy" beyond reasonable doubt.
"The oral and documentary evidence on record does not prove that the act of accused…was to cause misconduct or commit fraud. It is only the non-telecast of the programme 'Hum Ek Hai' which caused the loss," the judge observed. The court noted that the evidence suggested the accused's intention was to conduct the large-scale programme and generate profit for the organization, not to commit fraud.
The Unforeseen Cancellation That Changed Everything
A pivotal point in the case was the reason behind the programme's cancellation. The court accepted a witness's submission that the live telecast was called off at the last minute due to national mourning following a devastating earthquake in Gujarat. Judge Nagur noted that before this cancellation, all formalities, including document execution and payments to artists, had been completed.
The judgement also highlighted a key failure in the prosecution's case: "...prosecution failed to bring on record that the finances of MFSCDC were at any time during the period transferred to accused Nos 1 to 3. On the contrary the witnesses have admitted that no amount was transferred in the name of accused Nos 1 to 3." The trial, which began in 2012, saw testimonies from 33 witnesses before culminating in this acquittal, closing a legal chapter that had persisted since charges were first filed in 2004.
