The Telegraph
Since 1st March, 1999
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Kamal Parekh arrested

Calcutta, June 10: The Calcutta Police today arrested Kamal Parekh, former president of the Calcutta Stock Exchange, for his alleged involvement in the Rs 120-crore payment crisis in March 2001. Parekh will be produced in Bankshal Court tomorrow. Parekh has been interrogated a number of times in the past. The police now claim to have gathered evidence indicating Parekh’s involvement in the payment crisis.

The Calcutta Police have so far arrested all the three defaulters — Harish Chandra Biyani, Dinesh Kumar Singhania and Ashok Kumar Poddar — and big bull Ketan Parekh in connection with the scam.

Each of them spent three months in custody before being been released on bail. The police have not filed chargesheets against them as yet.

The police allege Parekh could have averted the payment crisis had he not released Rs 2.4 crore out of Biyani’s margin deposits a day before he finally defaulted to the exchange.

Parekh released the amount after a meeting with Biyani and B.V. Goud, former MD and CEO of Stock Holding Corporation of India (SHCIL), say cops probing the scam. Goud, too, had been arrested in connection with the payment crisis.

“Biyani had entered into collusive deals through SHCIL, which could have been expunged. Instead, Parekh released Rs 2.4 crore from Biyani’s margin account, enabling him to pay for the dubious trades,” said a sleuth.

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