Citi entitled to restitution of monies in gilts case: SC

 It was in that year that the first securities scam broke out and the special court was appointed. The Supreme Court, by this judgment, set aside the order of the special court.

 Canbank Mutual Fund (CMF) bought 11.5 per cent government bonds from the Bank of Karad on May 27, 1991. Citibank purchased Rs 45 crore worth of bonds from CMF on the same day. The total consideration was paid by Citibank to CMF.

 CMF also handed over to Citibank their subsidiary general ledger (SGL) transfer form, duly executed on their behalf to enable the Citibank to get the securities transferred to their name in the SGL maintained by the CMF with the Reserve Bank of India.

 When Citibank presented the SGL transfer form to RBI, it was dishonoured for want of balance.

 In September of the same year, Citibank agreed to sell to Standard Chartered Bank (SCB) bonds worth Rs 50 crore against the purchase price paid by SCB to Citibank. Since the bonds were not ready, Citibank issued two bankers