The Telegraph
Since 1st March, 1999
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Ketan’s bail extended

Calcutta, Dec. 20: The additional chief metropolitan magistrate of Mumbai has extended the conditional bail granted to rogue broker Ketan Parekh till January 7.

Parekh, who was arrested by Calcutta Police on December 2, had obtained bail from a court in Mumbai, but was asked to appear before the chief metropolitan magistrate (CMM) of Calcutta by December 20.

The CMM of Calcutta had issued a non-bailable arrest warrant for Parekh for his alleged involvement in the payment crisis at Calcutta Stock Exchange (CSE) in March last year.

The Joint Parliamentary Committee’s (JPC) report on the stock market upheaval was a shot in the arm for the cops. Besides holding Parekh responsible for the scam, JPC has recommended “criminal penal action” against him and the brokers who defaulted to the bourse.

Calcutta Police’s investigation is based on a complaint lodged by CSE in September. All the key defaulters—Harish Chandra Biyani, Ashok Kumar Poddar and Dinesh Kumar Singhania—have since been arrested.

The police are now on the lookout for Parekh and Dinesh Dalmia, the promoter-managing director of DSQ Software and other group companies.

The bourse has alleged in its FIR that the defaulting brokers, Parekh and Dalmia, had manipulated share prices with the intention of cheating individual investors.

Most of the defaulters were close allies of Parekh who told JPC that he had paid brokers in Calcutta Rs 3191 crore to fund transactions in shares.

The Parliamentary panel has also recommended similar police action against the broker-directors of the exchange.

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