Special Judge Hemant Gopal held Bansal and others guilty of wrongful gains by supplying sub standard rice, resulting in loss to the tune of Rs 1.8 crore to the FCI.
The CBI had filed the charge sheet against 28 persons including three FCI officials and 24 rice millers (including Bansal) in 2001.
Two accused had died during the trial while as many were acquitted and two were awarded imprisonment of two years in this case.
They were dismissed by the FCI after registration of FIR in the case.
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The case against Bansal and others was lodged in 1998, when in a raid conducted by Punjab Food and Civil Supplies Department, the officials found substandard rice being supplied to FCI after milling by few millers of Bareta of Mansa district.
This rice was allotted to them through Punjab State warehousing Corporation (PSWC).
SAD candidate and now Punjab Irrigation Minister Janmeja Singh Sekhon defeated him from Maur assembly segment of Bathinda in 2012 polls.
After that Bansal joined SAD in September, 2012.
A petition was filed in Punjab and Haryana High Court by a farmer from Bareta, demanding a CBI enquiry into the embezzlement done by a section of Bareta millers, which the court had admitted and ordered CBI enquiry on September 23, 1999.