Boi-Ketan Parekh Deal Hangs Fire With Centre Mum

Those who think that the public sector banks are board-driven may do well to take a look at Bank of India (BoI).

This large public sector bank which wants to strike compromise deal with Ketan Parekh to recover its Rs 130 crore lost in the Madhavpura Co-operative Bank pay-order scam has not yet been able to do so as it needs the government permission to settle the deal.

The bank board refused to clear the settlement and instead advised it to move the government seeking its clearance.

About three months back BoI moved the government with the proposal but the government has not yet got back to the bank. BoI chairman K V Krishnamurthy refused to comment on the development citing confidentiality. The government nominee on the BoI board is Shekhar Agarwal.

 

Meanwhile, Parekh has cleared around Rs 7 crore worth of liability to the bank out of Rs 130 crore which BoI lost in the Madhavpura Co-operative Bank pay-order scam.

According to the settlement plan, Parekh is expected to pay Rs 25 crore upfront and settle the rest of the amount over the next four years with a one-year moratorium at an interest rate linked to the bank