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Ketan Parekh gets bail on condition to pay back MMCB depositors Saturday, August 25, 2001
TIMES NEWS NETWORK
AHMEDABAD: Conditional bail was granted to prime accused Ketan Parekh in the Madhavpura Mercantile Co-operative Bank scam on Friday on an undertaking that the accused would deposit Rs 16.41 crore within the next three to six months to revive the accounts of over 1 lakh small depositors of the bank.
Chief Metropolitan Magistrate Smitaben Shah allowing bail to Parekh on a security of Rs 2 lakh and solvent security of Rs 10 lakh directed the accused to deposit the amount of Rs 16.41 crore in the Mandvi (Mumbai) branch of MMCB towards the revival of 1,09,794 accounts of people who had deposits less than Rs 5,000.
Parekh also had to take an undertaking before the CMM that he would deposit Rs 392 crore to clear off the dues of public with deposits up to Rs 1 lakh within three years. The total number of depositors of MMCB is 2,96,319 out of which almost one-third have deposits of up to Rs 5000.
Parekh will have to produce the receipt of the amounts deposited before the court within seven days of the specified time of deposits. The bail is liable to be cancelled if the conditions are not adhered to.
Parekh was arrested on August 10 in Mumbai following which he was remanded in CBI custody. His custody was extended till August 24 as the CBI sought to establish the fate of the MMCB depositors' money, Parekh's Swiss account and his links with the Mauritius-based Overseas Corporate Bodies, through which he had allegedly siphoned out money illegally.
The CMM directed Parekh to be present before the investigating agency on every Monday for the next six months and thereafter on the first Monday of every month.
Opposing the bail application, CBI counsel Nishit Mehta said the investigations were not yet complete and considering the sensitivity of the issue the accused should not be allowed bail and be sent in judicial custody. He said if he is granted bail, then conditions be placed on him adequately to protect the interest of depositors.
The CMM directed Parekh to submit his passport. The order said the amount to be deposited by him within six months would strictly be used for the revival of the accounts of the depositors with a balance less than Rs 5000. In case the government provides any dole, the amount would then be distributed so as to benefit depositors of the Rs 1 lakh and above category.
Parekh's case was presented his counsel Ashok Shah, assisted by Kiran Brahmbhatt.
News Source : Times Of India News Service [ Lightning News ]