Ketan Parekh, woman accomplice booked for cheating stock market investor of Rs 2 crore

According to the FIR, the complainant, a 47-year-old share market investor living in Andheri (West), first met the woman in 2015. In December 2020, she reportedly introduced him to Parekh at a five-star hotel in Bandra. She told him that Parekh was the stock operator for ‘Seacoast’, ‘Pessalo Digital’ and ‘Spacenet’ companies, says the FIR.

In June 2021, the woman allegedly asked the complainant to invest in the stock market in her name, through Parekh, and assured him of a “good profit”. The complainant gave Rs 55 lakh to her on June 20, 2021, for investing in ‘Seacoast’ company, according to the FIR. The same day, she reportedly told him that she had given the money to Parekh.

According to the FIR, the complainant rented a flat in Versova that month, and he and the woman began living there. He claimed to have deposited Rs 71.85 lakh in her bank account in 2021, for which he reportedly sold his family’s jewellery.

Later, the complainant allegedly found that the woman had purchased a Range Rover with his money. When he confronted her, she reportedly told him that Parekh wanted to gift her a car for her birthday, but asked her to use the complainant’s money as he could not give a big amount in cash. She reportedly assured the complainant that his money was safely deposited with Parekh.

Following this incident, the complainant reportedly found that Parekh and the woman were “close friends”, according to the FIR.

In January and June 2022, he allegedly deposited another Rs 49 lakh in the woman’s account after she told him that Parekh had recommended purchase of more shares of ‘Pessalo Digital’ for a huge profit.

And in May, July and September of 2023, he allegedly gave her Rs 37 lakh in cash after she told him that Parekh recommended investing in the shares of ‘Spacenet’, according to the FIR.

The FIR states that when the complainant later asked the woman and Parekh about his money, they ignored him. So, on December 25, 2023, he reportedly went to Parekh’s home and told his (Parekh’s) wife that he was having an affair with the accused woman.

The same day, Parekh reportedly asked the complainant to meet him at a hotel, where he allegedly assured him that he would return Rs 42 lakh, and give him 1 lakh shares of ‘Pessalo Digital’ in a few days. In return, Parekh requested the complainant to tell his wife that he was not having an affair. The complainant secretly recorded this conversation, according to the FIR.

The complainant then reportedly went to Parekh’s home again and told his wife that it was a misunderstanding, and he (Parekh) was not having an affair.

But Parekh and the accused woman did not return his money, according to the FIR. A cheque given by the woman to the complainant as security was also dishonoured by the bank, police sources said.

The complainant alleged that Parekh then encouraged the accused woman to file a false rape case against him. On April 13, 2024, she filed a rape case against the complainant at the Versova police station. But the complainant informed the court that it was a false case and secured anticipatory bail, a police officer said.

The complainant then approached the Versova police and filed a cheating case. The police have registered the FIR and are checking the veracity of the allegations made by the complainant against Parekh and the woman, said another officer.

Saying that Parekh has a history of committing stock market manipulation, the complainant’s advocates, Taukeer Siddiqui and Bavita Shukla, said they have evidence including purported audio clips in which Parekh reportedly admits that he has the money and will return it soon. The evidence has been submitted to the investigators, they said.

Earlier, Parekh was named in over two dozen cases under the Securities and Exchange Board of India (SEBI) Act for stock exchange violations, including trading violations and non-payment of penalty. SEBI banned him from the market for 14 years in 2003. A Special CBI court also convicted him and sentenced him to two years imprisonment in 2014.

A chartered accountant by profession, Parekh became hyperactive in the stock markets between 1999-2001, rigging up the shares of information, communication and entertainment (ICE) companies using circular trading, Gujarat-based Madhavpura Mercantile Cooperative Bank, and the Kolkata stock exchange.

Parekh, who was mentored by Harshad Mehta, the kingpin of the 1991 stock market scam, led the bull rally in 1999-2000 which coincided with the global dotcom boom and bust. Other investors and traders followed Parekh’s moves in rigging up ten ICE companies, which were then known as K-10 stocks. Promoters of some companies even funded Parekh to boost their shares.

The scam was unravelled in the wake of a payment crisis at the Kolkata stock exchange. Stock market indices tanked and the collapse was further catalysed by the bursting of the global dotcom bubble. The scam eventually led to the collapse of UTI and tightening of norms by SEBI.