Calcutta, Jan. 28: Ketan Parekh’s lawyers today said the Big Bull had tried to bail out some of the defaulters of Calcutta Stock Exchange and had paid them Rs 79 crore in several tranches between March 7 and 10, 2001.
Parekh’s associates in Calcutta defaulted to the exchange on March 8, 2001, and blamed it on the Big Bull. They said they could not pay the exchange because they had bought shares for Parekh, but he had not fulfiled his payment obligations as a client.
“Though he (Parekh) was not indebted to them, he paid them Rs 79 crore to bail them out of the crisis,” Parekh’s lawyer, Y. J. Dastur, told the chief metropolitan magistrate today.
“Yet the exchange says Parekh was a conspirator and holds him responsible for the payment crisis. The charge against him is baseless,” he said, while seeking bail for the protagonist of the securities scam on 2000-01.
The magistrate, however, rejected Parekh’s bail application and remanded him in police custody till February 1. Parekh surrendered before the chief metropolitan magistrate on January 20, and had been remanded in the custody of the city police till today.
Dastur also claimed that the Enforcement Directorate (ED) had given Parekh a “clean chit” after an extensive investigation of his dealings with overseas corporate bodies.
“The other allegation against Parekh is that he had siphoned funds out of the country through overseas corporate bodies trading on Indian bourses, and parked them abroad in unknown bank accounts and corporate entities.
“In this connection, we would like to submit that Parekh’s dealings were investigated by the Enforcement Directorate (ED) — the appropriate agency for investigation of overseas financial transactions. At the end of the probe, the ED gave Parekh a clean chit,” Dastur told the magistrate.
“What is more, Parekh has been interrogated — sometimes in detention — by several authorities, including the Securities and Exchange Board of India (Sebi), the Joint Parliamentary Committee probing the scam, the Central Bureau of Investigation (CBI) — for his dealings with the Madhavpura Mercantile Bank and Bank of India — and the ED.
“All his statements (made to these authorities) are on record, and none of them have held Parekh responsible for the payment crisis in Calcutta,” Dastur said, challenging the police’s prayer for extension of his remand in their custody.
The police are tight-lipped, but said they had made significant progress with the investigation. The city police have already nabbed all the three main defaulters, besides Parekh. They are now on the trail of Dinesh Dalmia, the promoter-managing director of DSQ Software and other group companies.
The exchange has alleged in its FIR that Dalmia had tried to sell them a dummy in his attempt to bail out Harish Chandra Biyani — one of the key defaulters — who was arrested by the city police and since released on bail.