Securities scam: Ketan Parekh’s bail plea rejected

The court ruled that “no stringent” condition could bind Parekh and it would instead put the case on top priority by hearing it on a day-to-day basis while he remains in custody.

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Former stockbroker Ketan Parekh, linked to the 2001 securities scam, will continue to remain in jail after a special Sebi court on Friday rejected his bail application. Parekh was sent to judicial custody last week when he surrendered before the court after a non-bailable warrant was issued against him.

Special Judge M G Deshpande in an order has said the trial against Parekh will “not be safe” if he is released on bail as he had shown “disregard” to the proceedings. The court ruled that “no stringent” condition could bind Parekh and it would instead put the case on top priority by hearing it on a day-to-day basis while he remains in custody.

“The object of the Sebi Act, 1992, is to protect the interest of the investors who were the victims of the alleged manipulation of accused number 5 (Parekh) in securities market. I am constrained to note that it took more than three years to force the presence of accused number 5 … how much time will be required in future for hearing and deciding the case finally on merit, no one is sure about the same … Trying the case by keeping accused number 5 undertrial is the only solution to reach the finality of the case,” the court said.

The court dismissed submissions made by Parekh’s advocates, including stating that he had not appeared before
the court due to some misunderstanding. The court also observed that after the Sebi Act was amended in 2002, it has provisions for imprisonment till up to 10 years and fine up to Rs 25 crore, which showed the seriousness of the allegations.

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