Mohan, who was present in court as was Dalal, fainted on hearing the order, and had to be attended by a doctor. Justice SN Variava stopped the dictation of the order till Mohan was brought back into the courtroom. ``I'm sorry, but it is my job,'' Variava said sympathetically.

This is the first order in the cases relating to the Rs 2,500 crore securities scam which the Central Bureau of Investigation (CBI) is prosecuting. Dalal has earlier been convicted in a case under section 138, Negotiable Instruments Act, and has appealed to the Supreme Court. This is his second conviction in the scam relatedcases.

Variava acquitted two other accused, who were also charged with conspiracy of siphoning off Rs 33 crore from Canfina. The two are MK Ashok Kumar and N Balasubramaniam, the former being the chief dealer and the latter the operated the backup office of Canfina. Dalal was charged with having conspired to cheat Canfina of Rs 33 crore by submitting Cancigo units as securities, which were held in the name of Andhra Bank and Andhra Bank Financial Services, and were not transferable.

The court found Mohan guilty under section 409, IPC (criminal breach of trust), and under sections of the Prevention of Corruption Act. Dalal was charged and found guilty under section 411, IPC (receiving stolen property, since it is tainted property) and section 120 B, IPC (criminal conspiracy).

The CBI's case was that Dalal owed Canfina Rs 25 crore, which he tried to set off by the sale of Cancigo units worth Rs 33 crore to Canfina. (He got a cheque for the balance). These were neither in his name nor were theytransferable.

Since Dalal was a broker, he had bought the Cancigo units for Andhra Bank (worth Rs 22 cr) and ABFSL (worth Rs 11 cr). Dalal chose to set off these with his payment due to Canfina of Rs 25 cr. He sold the units, with the understanding that his dues would be set off, as it was. Canfina also issued a cheque of Rs 7.98 cr drawn on Andhra Bank, with instructions to credit it to Dalal's account.

In fact, the official of Canfina based in Mumbai who accepted the units, deposed that he had refused to take them at first, but on oral instructions from Mohan, he accepted them. Mohan had told him that the money would be paid for from Bangalore.

Dalal argued that he had paid for the units and that there was nothing illegal in what he had done. He also submitted that he had given the units openly, and Canfina had accepted them, so there was no attempt to cheat. He also said it was a bonafide transaction, and in fact he was the victim, and not the offender. Variava rejected his contention on the groundthat Dalal knew he had no title on the Cancigo units which he offered, and he knew that they were not transferable.

The units stood in the name of Andhra Bank and ABFSL, and there was no explanation for the same. It was later discovered that Andhra Bank and ABFSL has no notings in their books of any such purchase of units. The units were taken by the custodian appointed under the special court, and were declared benami.

While the CBI was represented by VC Gupte and Raja Thakre, Dalal was represented by RD Ovalekar.