Jaitley is under fire for defending Ketan Parekh

Chairman of MMCB Jayrambhai Patel said: ‘‘He was present many times when the MMCB revival package was discussed with L K Advani and Keshubhai Patel. I know, because I was present there. How can he now turn around and defend Parekh? This is absolutely unethical. On moral grounds, he should resign,’’ says Jayrambhai Patel.

It’s not only depositors and Opposition politicians who are angry with Jaitley. Even BJP leaders are objecting to his defence of Parekh.

‘‘As a Rajya Sabha MP from Gujarat, Jaitley is expected to protect the interests of depositors who lost their money. By taking up the case of Parekh, who caused so much loss and suffering to the depositors in the state, he is hurting a lot of people here,’’ says A K Patel, BJP MP from Mehsana.

He has shot off a letter to BJP president Advani, demanding that Jaitley should resign as MP if he wants to continue with Parekh’s case.

MMCB had filed a case against Parekh and this had led to his arrest. When When Parekh’s bail application came up for hearing in a local court, he promised to deposit Rs 16 crore within six months and then pay Rs 380 crore in three years. He paid up Rs 16 crore but didn’t keep his promise after that.

On MMCB’s application, Gujarat High Court cancelled his bail. Parekh then approached the Supreme Court, where Jaitley is his counsel.

Contacted in Pondicherry, Jaitley declined to discuss his defence of Parekh. When told that there were allegations that his action was politcally improper, he said he would comment later.

Jaitley’s action has evoked such strong reaction because Parekh’s default not only led to the collapse of MMCB but also several other cooperative banks. This hurt over 20 lakh depositors.

‘‘As many as 39 banks banks went bust after MMCB,’’ says Prakash Gajjar, president of the Cooperative Bank Depositors Association. ‘‘The money of 270 other banks was blocked in MMCB, and if MMCB is not revived then 65 of these banks may also go bust. People are still fighting to get their money back.’’

When Advani, who as deputy prime minister had reviewed the MMCB revival pacakage, visited Ahmedabad on Thursday, a delegation of bank depositors courted arrest after being denied permission to meet him.