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Court asks CBI to arrest Ketan Parekh

A designated court has asked the Central Bureau of Investigation to arrest and produce on April 25, Ketan Parekh, the main accused in Rs 10 billion Madhavpura Mercantile Co-operative Bank after the big bull failed to deposit Rs 160 million as compensation for the small investors.

Cancelling his bail on Tuesday, Chief Metropolitan Magistrate S J Seth gave the order in response to an application moved by Parekh seeking more time to deposit the money.

Parekh had sought some more time to deposit Rs 160 million, which was meant to compensate at least the small investors, the CBI said and added Parekh had so far deposited nearly Rs 70 million in the Mandvi (Mumbai) branch of the bank.

While granting him bail in August last year, the court had directed Parekh to deposit Rs 160 million within six months.

The CBI said that it would be soon taking the necessary action in the case as per the court direction.

Parekh's luck ran short when the Economic Offences Wing and the Bank Securities and Fraud Cell unravelled a Rs 1.30 billion pay-order scam by Parekh in Mumbai.

He along with his accomplices was arrested in Mumbai on charges of involvement in the scam which virtually opened a pandora's box as Parekh was also found involved in gross irregularities in the Madhavpura Merchantile Co-operative bank.

The bank had to shut down and the government appointed an administrator for it.

CBI also traced Parekh's account in a Switzerland bank and the agency had a letters rogatory sent to the authorities there to get the details as it believes that he may have siphoned money out of the country.

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