SC directs ICICI Bank to release Jermyn Capital money

The Supreme Court today directed ICICI Bank to release the money of investment firm Jermyn Capital, suspected to be one of the 50 companies associated with scamster Ketan Parekh.

The account of the Dubai-based firm was frozen for three years in 2006 on directions from the Central Bureau of Investigation (CBI) for its alleged involvement in the Ketan Parekh stock scam of 2001.

A bench comprising Justices Altamas Kabir and A K Patnaik directed ICICI to release the money of Jermyn Capital after observing that the CBI had not issued proper orders to freeze the account of the Dubai-based investment firm.

The court held that the CBI's direction to the ICICI Bank was not issued as per provisions mentioned under the section 102 of Criminal Procedure Code, 1973.

The court also observed that CBI had not taken any steps to issue fresh freezing order to ICICI despite suggestions given by the Additional Solicitor General H P Rawal.

After the expiry of the three year term of the 2006 ban, the CBI again directed the bank to freeze the account, but this time, the probe agency had written a letter to the bank, instead of passing an order.

The apex court turned down CBI's contention that the agency had apprehensions over the amount in the ICICI bank that may be the subject matter of other cases related to the Madhavpura Bank scam probe of Ketan Parekh.

Apex court order came over a contempt plea moved by the investment firm against CBI and ICICI.

Ketan Parekh, a former stock broker was convicted in 2008, for his involvement in the Indian stock market scam in late 1999-2001. He is barred from trading in stock till 2017.

Jermyn LLC of Dubai came under scanner after the CBI found its linkage with a similar company named Jermyn Plc, which was registered in the UK.

During the probe CBI had found that this UK based firm, which was earlier named as Triumph International Finance India, had some common share holders with Dubai-based Jermyn Capital.

Triumph International was one of the 50 entities identified by CBI and Sebi to be associated Ketan Parekh.