SC rejects Parekh's plea

SC rejects Parekh's plea; broker may be arrested for default Stock broker Ketan Parekh, involved in the Rs 888-crore Madhavpura Mercantile Co-operative Bank scam, is likely to be arrested with the Supreme Court on Tuesday refusing to give him more time to deposit a Rs 26-crore instalment, a pre-condition set by the court for him to continue on bail. A bench headed by Justice Ashok Bhan today dismissed his application seeking extension of time to pay the instalment, which was due on 1st May. Madhavpura Mercantile Co-operative Bank counsel Mahesh Agarwal said that the effect of today's order is that the bail granted to Parekh stands automatically cancelled and the CBI can arrest him. The Bank's plea seeking cancellation of Parekh's bail is scheduled to be taken up on 27th August. Apart from defaulting on the payment of 1st May instalment, the broker had failed to meet the deadlines for paying the dues to the Bank earlier as well. The apex court on 17th May, 2007 had granted bail to Parekh on the condition that he would pay Rs 396 crore to the bank in instalments of Rs 26 crore each. It had further ordered that in case of any default in payment of instalments by Parekh, his bail would be deemed to have been cancelled and he would have to surrender. Till now, Parekh has paid Rs 370 crore out of the total stipulated amount of Rs 396 crore, but the last instalment of more than Rs 26 crore is still due. Meanwhile, the Bench has issued notice to Parekh on the Bank's application for cancellation of regular bail and direction to CBI to arrest him.

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