Stockbroker was not paying for 5 months

AHMEDABAD: Mumbai-based stockbroker Ketan Parekh is Ahmedabad-based Madhavpura Mercantile Co-operative Bank (MMCB)'s biggest defaulter which led to lakhs of innocent persons losing their hard earned savings. Charged of siphoning off money to the tune of Rs 1,030 crore from this bank, he had stopped paying instalments to the bank for last five months, thus violating the bail conditions.This is why bank moved for cancellation of his bail in Supreme Court.
Former chairman Ramesh Parikh and managing director of MMCB Devendra Pandya had put aside all rules and favoured Parekh by issuing a loan of Rs 1,030 crore. Parekh was not able to pay up the loan, so in 2001, the bank was forced to close down. The RBI then appointed liquidator Ramchandra, who scrutinized all the documents and through bank advocate Ajit Jadeja registered an offence in Madhavpura police station against Parekh and 10 others of embezzling Rs 1,030 crore in 2001. This cheating ruined the lives of over 32 lakh depositors of the bank.
Parekh had withdrawn this money through 19 accounts in MMCB. Since this was a multi-state bank, within 48 hours, the state government handed over this investigation to CID (crime)'s economic offences cell whose deputy commissioner of police Siddhrajsinh Bhati arrested Parekh from Mumbai. During this time, a PIL was filed in Gujarat High Court to change the investigating agency and the investigation was given to CBI.
However, a metropolitan court granted bail to Parekh on the condition that he would pay MMCB back in installments of Rs 26 crore every quarter to cover Rs 396 crore of the total defaulted amount. But he failed to pay, so the matter went to SC, where Parekh assured the apex court that every quarter he will deposit Rs 26 crore to the bank and on the basis of this his bail kept getting extended. So far, he has paid Rs 370 crore to the bank, but stopped five months back. MMCB, through CBI, filed an application to get his bail cancelled.
On Tuesday, another application for Rs 579 crore was admitted by SC and Ketan has been asked to reply within 15 days for this amount, MMCB chairman Dhirubhai Chavda said.