Ketan Parekh gets two-year jail in bank scam

A CBI Special Court Monday pronounced a two-year jail term to share broker Ketan M. Parekh for cheating the Bank of Baroda (BoB) in the securities scam of 1989-91, an official said Monday.

Three other bank officials accused as conspirators with Parekh were acquitted. Parekh was also fined Rs.50,000

The Central Bureau of Investigation (CBI) had registered a case against Parekh, the then BoB senior manager of the NRI Cell and in-charge of the Safe Custody Department and some other officers.

They were accused of abusing their official position in 1989-91 to cheat BoB's Sir PM Road Branch in south Mumbai.

According to CBI, the bank officials obtained duplicate debentures of a well known private company in lieu of the originals which were purportedly 'lost' from the safe custody of the BoB's Mumbai Main Branch.

They pledged these debentures in the name of two non-resident Indians and availed loans in the name of four associate firms owned by Parek from BoB, causing a loss to the bank.

The CBI filed a chargesheet April 28, 2000 in the CBI Special Court against Parekh and the three bank officials. It found Parekh guilty.

Parekh had earlier been convicted in some other cases pertaining to the 1989-91 scams that rocked the country's stock markets.