SC issues notice to Ketan Parekh

The Supreme Court on Monday issued notices to stock broker Ketan Parekh, CBI and Gujarat on a petition filed by Madhavpura Mercantile Bank challenging grant of bail to the broker in the Rs 888 crore fraud case. A bench comprising Justice Y.K. Sabharwal and Justice H.K. Sema issued the notices after hearing petitioner’s counsel Ashok Desai and Mahesh Agarwal who contended that in a fraud of this nature the courts below should not have granted bail to Parekh.

The bank alleged that though the amount of defalcation and fraud committed by Parekh was to the tune of Rs 888 crore, the chief metropolitan magistrate had granted him bail on the condition that he paid an amount of Rs 16.41 crore on or before February 2002 and further amount of Rs 380 crore within three years. The petitioner said the accused defaulted in payment of the first installment and the trial court refused to give extension for the same.

However, the Gujarat high court had extended the time for deposition of the first installment. The bank had filed a petition in the high court seeking cancellation of the bail granted to Parekh but the same was rejected. It, then, filed an appeal in the Supreme Court challenging the high court order.