SCAMSTERS INC.

The Supreme Court directed the application of former leading stock broker Ketan Parekh, seeking exemption from surrender, to be listed before a chamber judge.

Seven people including Ketan Parekh, Hiten Dalal, S K Zaveri, Navin Chandra Parikh and three officials of CANBANK Financial Limited (CANFINA), a subsidiary of Canara bank, were convicted and sentenced to one year rigorous imprisonment by a special judge on April 1. The Bangalore branch of CANFINA was defrauded of Rs 47.7 crore.

The special judge, however, suspended the sentence till July 31 to enable the convicts to go in appeal.

The matter was mentioned before Chief Justice K G Balakrishnan and Justices P Sadhasivam and J M Panchal seeking exemption from surrender. The bench, however, directed the application to be listed before the chamber judge of the Supreme Court. Ketan Parekh is seeking bail in the case.

On 15th July, the apex court had refused to extend time for Ketan Parekh to pay Rs 26 crore to Madhavpura Cooperative Bank, which was defrauded by him in connivance with the CMD of the Bank to the tune of Rs 1000 crore.

CBI is likely to arrest him in Madhavpura Bank scam as his release on bail was conditional, subject to the timely payment of instalments to the bank by him. He has already repaid Rs 370 crores to the bank and according to the bank Rs 579 crore still remain outstanding against Ketan Parekh.

CANFINA scam had taken place in 1992 and in 2001 SEBI had debarred Ketan Parekh from dealing in stocks in the share market.

Source:UNI