Ketan Parekh: Bad Times Continue
Moneylife Digital Team 20 April 2018
On 8th March, a newspaper report said that the Bombay High Court had granted bail to Ketan Parekh the main accused in the massive stock market scam that unravelled in 2000-01. The Court, it said, had suspended a three-year sentence against the stockbroker for violation under the SEBI (Securities & Exchange Board of India) Act. However, the bad times continue for the beleaguered stockbroker, who has still not been released from jail for another mischief from the past. 
 
In 2001, Bank of India was left with dud pay-orders of Rs120 crore issued by Madhavpura Mercantile Cooperative Bank (MMCB) which has since been liquidated. MMCB was defrauded of over Rs888 crore by Ketan Parekh leading to his arrest in March 2001. The broker had managed to get bail from the Supreme Court on the assurance that he would repay MMCB Rs15 crore per month, without any clarity about the source of funds. 
 
This happened, despite the fact that SEBI had barred him from the capital market for 14 years. Bank of India, which has an order from the debt recovery tribunal against the broker, has suddenly turned active after a decade and is understood to have ensured that he promptly went back to jail.  
Comments
ashok s
8 years ago
How can the Supreme Court believe assurances of a scamster repay MMCB Rs15 crore per month, without any clarity about the source of funds.Does he still have
the banking of some companies which were benefited from his trading? should be shown What about the officials of BOI who discounted the dud pay-orders of Rs120 crore issued by Madhavpura Mercantile .How much money is recovered from the officials.Any leniency to the officials shown ,only helps more scamsters to commit greater scams with brazens
Ezeelok
8 years ago
All crooks & Fraudsters. Shocking that conniving Bank officials are not punished. Unfortunately entire system is highly Corrupt.
Danny Allen
Replied to Ezeelok comment 8 years ago
Absolutely right ! The entire system in India right from Police, Judiciary, Law enforcement agencies, some Politicians and many Bank officials are hand in glove with vested interests just trying to make money by hook or by crook!
India cannot be any kind of power unless corruption at all levels is tackled with a heavy hand.
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