Stock broker Ketan Parekh’s arrest seems to be imminent with the Supreme Court on Tuesday rejecting his plea to grant him more time to deposit Rs 26 crore instalment for the month of May, a pre-condition set by the court for him to continue on bail.
A bench headed by Justice Ashok Bhan dismissed Parekh’s application seeking time to pay the instalment which was due on May 1. Parekh has been paying the instalment since last year to Madhavpura Mercantile Co-operative Bank, to which he owed Rs 396 crore. Parekh has paid Rs 370 crore, but the last instalment of more than Rs 26 crore is still due.
Madhavpura Mercantile Co-operative Bank counsel Mahesh Agarwal said that the effect of Monday’s order is that the bail granted to Parekh stands automatically cancelled. However, the bank has moved a separate application seeking cancellation of Parekh’s bail. The court will hear the bank’s application on August 27.
The apex court had on May 17, 2007, granted bail to Parekh on the condition that he would re-pay Rs 396 crore to the bank through a monthly instalment fixed at Rs 26 crore. The conditions also included that in case of a default, Parekh’s bail would stand cancelled and the broker would have to surrender.
Citing his failure to pay the last instalment, the bank now wants Parekh’s bail to be cancelled. Besides, the bank has moved another application to direct the bull to pay the balance outstanding of Rs 579.67 crore, of which Rs 396 crore was to be paid through instalments.
The court has sought Parekh’s reply on the two applications moved by the bank. Agarwal said Parekh, in collusion with the then CMD of the bank, Ramesh Parikh, had not only ruined the bank but also cheated the innocent depositors whose deposits were totally wiped out.
Parekh is also accused of siphoning funds of small investors who had deposited money in the bank. He has been banned from operating in the stock market by SEBI for manipulating the stock prices of various companies in 2000-01.