Parekh defaults on instalment, likely to go back to jail

Meanwhile, the Court also issued a notice to Parekh on the bank’s application for cancellation of regular bail and direction to the CBI to arrest him. “The petitioner has not paid any amount towards the instalment that was due on May 1, 2008, and therefore, as per the order of the Supreme Court dated May 17, 2007, the bail of the petitioner stands automatically cancelled and the petitioner is liable to be arrested,” the Ahmedabad-based bank stated in its application.

Besides, the bank has moved another application seeking a direction to Parekh to pay the balance outstanding of Rs 579.67 crore. The apex court has also sought a reply form the stockbroker on the bank’s plea.

The bank’s plea seeking cancellation of Parekh’s bail is scheduled to be taken up on August 27.

“It has been proven without doubt that Parekh has means to pay but only under threat of arrest. In view of the fact that the general public has been duped by the criminal act of the petitioner, the condition for remaining on bail ought to be enhanced and made more harsh so that the depositors’ money can be recovered,” the bank’s counsel Mahesh Agarwal said.

Additional Solicitor General Mohan Parasaran, while arguing that the stockbroker should be behind bars for default, said the recovery of dues was equally important and the Bench may consider extension of time to Parekh for payment of the instalment.

Parekh was involved in a massive fraud by siphoning off funds of small investors who had deposited money in the bank.

He has also been banned from operating in the Indian stock market by market regulator SEBI for his role in manipulating the stock prices of various companies in 2000-01.