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Two cooperative bank officers held under PASA, jailed Wednesday, May 9, 2001
Ahmedabad: Two men accused in the cooperative bank-stock market scam have been jailed under the Prevention of Anti-Social Activities Act (PASA), which bars them from getting bail.
Ramesh Parikh and Devendra Pandya have been sent to the Porbandar and Jamnagar Central Jails respectively. Both were arrested late last month.
Parikh was the former chairman of the Madhavpura Mercantile Co-operative Bank (MMCB) and Pandya its former chief executive officer. After the arrests, Parikh got himself admitted to a hospital for treatment.
Both have been charged with flouting the Reserve Bank of India's lending rules and advancing Rs. 12.3 billion to Bombay Stock Market broker Ketan Parikh, the prime suspect in the scam which has almost ruined the MMCB.
The PASA orders follow a criminal complaint filed by the bank's administrator, S. Ramchandran, on April 21 against Parikh, Pandya and the bank's Mumbai branch manager, Jagdish Pandya. The three have been accused of cheating, forgery and breach of trust under the Indian Penal Code and Banking Regulation Act.
The MMCB has denied payment of mature term deposits to hundreds of small depositors following a liquidity crunch. Ramchandran has appointed chartered accountants to look into the prospect of reviving the sinking bank.
In the interim, depositors can withdraw only up to Rs. 1,000 at a time. The scam has shaken the confidence of people in cooperative banks in Gujarat.