SC refuses more time to leading share broker

New Delhi, Jul 15 (UNI) The Supreme Court today dismissed the application of leading share broker Ketan Parekh seeking extension of time for repayment of the dues of Madhavpura Mercantile Bank in Gujarat amounting to Rs 579 crore.

A Bench comprising Justices Ashok Bhan and V S Sirpurkar in its order made it clear that Ketan Parekh will remain on bail subject to the payment of Rs 396 crore in convenient installments.

In 2001 a scam took place in the Madhavpura Mercantile Bank in which about Rs 1000 crore were illegally siphoned off. Ketan Parekh owes principal amount of Rs 888 crore to the Bank out of which he has already paid Rs 370 crore.

An installment of Rs 26 crore was to be paid on May 1, 2008 failing which he filed an application for extension of time but the apex court today refused to grant the same.

Parekh was granted bail by the apex court on July 2, 2007 subject to the timely payment of the installments as fixed by the Bank. With today's order the CBI is free to rearrest him if he continues to be a defaulter.

The Supreme Court also issued notice to Parekh and the CBI on the application of the Bank seeking appropriate legal action against him for default in payment of inastallments.

UNI SC AKJ KN1630