Ketan M Parekh gets 2 yrs in Bank of Baroda case

Is namesake of tainted stock broker involved in the K10 stocks' rigging in 2000

A court here sentenced Ketan Manharlal Parekh to two-year rigorous imprisonment for defrauding the Bank of Baroda (BoB), an offence committed 24 years ago. A Central Bureau of Investigation (CBI) spokesperson confirmed the person was different from the Ketan Parekh involved in the securities scam at the turn of the millennium.

Incidentally, the latest case also has a charge sheet that had been filed around the same time, 14 years ago in April 2000. "The special judge for the CBI cases, Mumbai, has convicted share broker Ketan Manharlal Parekh and sentenced him to two-year rigorous imprisonment with a fine of Rs 50,000," said the CBI.
 

The CBI said the offence dated to 1989-1991. It had filed a case against Parekh and certain officials of the BoB for defrauding the bank to avail loans from it.

BLOW FOR PAREKH
Special CBI court sentences Ketan Parekh to two-year rigorous imprisonment

• Imprisonment and Rs 50,000 fine
• Three Bank of Baroda officials had also been charged
• Were accused of abusing official positions in 1989-1991 and conspiring with Parekh to grant loans to his four associate firms
• Now acquitted

"They cheated the BoB, Sir P M Road branch, Mumbai, by obtaining the duplicate debentures in lieu of the originals and by pledging the original debentures of a leading private company in the name of two non-resident Indians (NRIs), purportedly lost from the safe custody department, BoB, Mumbai main office. They availed loan facilities in the name of four associate firms of Ketan Manharlal Parekh from the BoB, causing loss to it," said the CBI.

While Parekh has been convicted, the officials were acquitted. The Ketan Parekh associated with the securities scam became infamous in the scandal that took place ten years later (in 2000) involving the rigging of share prices by using bank funds.

He was found guilty of manipulating stock prices during the time of the dotcom bubble (at the turn of the millennium). He was known for rigging the shares of 10 companies, the 'K-10 stocks'. These included Himachal Futuristic Communications, Zee Telefilms, Ranbaxy and Aftek.

The Securities and Exchange Board of India had passed an order banning Parekh and ten of his associates from accessing the stock market in any fashion for 14 years from 2003. They are barred till 2017.