CBI arrests Ketan Parekh

mumbai: stock broker ketan parekh was on friday arrested by the cbi in a case filed by the madhavpura mercantile co-operative bank (mmcb) in ahmedabad alleging fraud and misappropriation of public funds. ketan was arrested on friday evening after interrogation by the cbi at its security and fraud cell office here in connection with the case. according to cbi sources, he would be taken to ahmedabad on friday night and produced before a competent court there on saturday.the mumbai high court had on july 26 rejected the plea of ketan for anticipatory bail. however, the order was stayed until two weeks to enable him to approach an appellate court. the high court had on thursday rejected his petition praying for his production before a court in mumbai in the event of his arrest in a case filed by mmcb. the court also turned down his plea to be lodged in police custody in mumbai in case he was denied bail. hearing his petition, justice a.b. palkar, left the question of jurisdiction open to the court before whom he would be produced in the event of his arrest. according to the fir filed by mmcb, 19 companies had allegedly drained rs 800 crore from the bank by committing fraud. of these, 10 companies allegedly belonged to ketan parekh. parekh sought anticipatory bail in the wake of reports, indicating that his swiss bank account had been frozen following a request from the interpol at the behest of the cbi. parekh had contended that he did not have any account in swiss bank and denied owing any funds in a foreign account. he also asserted that he had neither transferred any fund from this country to any destination abroad nor had he earned any foreign exchange abroad which had not been remitted to india. in the high court, parekh categorically denied cbi's claim that he had siphoned off the money allegedly acquired from the scam involving funds of the madhavpura mercantile co-operative bank. the cbi had alleged on july 5 that this money was deposited in a swiss bank. the cbi argued that two firs had been filed, one involving fraud on bank of india and the other concerning madhavpura mercantile co-operative bank (mmcb). in the first case, parekh had been arrested, while in the second one he was seeking anticipatory bail. on a complaint filed by bank of india, ketan was arrested on march 30 and remanded to custody from time to time. he was released on bail by a special court on may 21. the cbi alleged that the accused had connived to obtain 13 pay orders of rs 137 crore from the madhavpura bank's mandvi branch. they were purchased by bank of india on march 8 and 9 and proceeds deposited in ketan parekh group of companies. however, when they were sent for clearing, reserve bank of india returned them because madhavpura bank failed to meet its liability.