Nearly 18 years after charges were first levelled, a Special Anti-Corruption Bureau (ACB) court in Mumbai on Saturday acquitted former IAS officer Govind Swarup and former Financial Advisor Ashok Shukla in a case related to alleged financial irregularities at Maharashtra Film, Stage and Cultural Development Corporation (MFSCDC), popularly known as FilmCity.
Govind Swarup, now 79, who served as the Managing Director of FilmCity, and Ashok Shukla, 73, were accused of misappropriating public funds during the organisation of a large-scale cultural programme titled “Hum Ek Hai” in 2001. The court, however, held that the prosecution failed to establish dishonest intent or criminal conspiracy on their part.
The third accused in the case, Shahab Ahmed, passed away during the trial, following which proceedings against him were abated.
Additional Sessions Judge S.S. Nagur, in a detailed 135-page judgment, observed that while the corporation did suffer financial losses, these could not be attributed to fraudulent conduct by the accused. The court noted that the loss occurred primarily due to the last-minute cancellation of the live telecast of the programme following the devastating earthquake in Gujarat and the subsequent declaration of national mourning.
“The oral and documentary evidence on record does not establish that the acts of the accused were committed with dishonest intention or amounted to criminal misconduct,” the judge said. “The evidence shows that the objective was to organise the programme on a large scale and generate revenue from it.”
The judge further noted that all procedural formalities—including execution of contracts and payments to artists—had been completed before the telecast was called off due to the national tragedy.
The prosecution case revolved around the Republic Day event scheduled for January 26, 2001, which was meant to mark 50 years of the Indian Republic with simultaneous performances across five major cities. Investigators alleged that the accused entered into unauthorised agreements with private entities, including M/s Montage owned by Shahab Ahmed, and illegally pledged public funds and fixed deposits as bank guarantees.
It was also alleged that a private joint bank account was opened to route sponsorship funds received from television networks such as Zee TV and Sony, causing a financial loss of approximately ₹6.42 crore to the corporation. The prosecution claimed the accused had colluded to misappropriate funds, resulting in criminal misconduct.
However, the court noted that none of the 33 witnesses examined during the trial—which began in 2012—could demonstrate that any funds of MFSCDC were transferred to the personal accounts of the accused. On the contrary, several witnesses admitted that no money was received by the accused individuals.
Concluding that the prosecution failed to prove its case beyond reasonable doubt, the court acquitted Swarup and Shukla of all charges.
