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CSE scam: Ketan Parekh granted bail

Tainted stockbroker Ketan Parekh, held for his alleged involvement in last year's Rs 120 crore (RS 1.2 billion) scam at Calcutta Stock Exchange, was granted bail on Tuesday by a Mumbai court against the sum of Rs 100,000 and surety of like amount.

Parekh was arrested on Monday by a team of Kolkata police from one of his offices near Dalal Street in Mumbai. He was produced before a magistrate who put him in a transit remand for his production in a court at Kolkata.

The transit remand was given subject to condition that the prosecution would appear in another court to argue Parekh's bail application. Accordingly, Parekh's lawyers Mahesh Jethmalani and Prenov Badheka argued his bail but the prosecution could not produce the documents.

In the absence of relevant case papers and documents, additional chief metropolitan magistrate R D Gate used his discretion under section 81 of Cr PC and granted him bail.

Parekh was one of the accused named in the FIR filed by CSE in September.

It was alleged that Parekh, through his associates in Kolkata, Singhania, Biyani and Poddar, had made brisk purchases of shares on CSE prior to March, 2001 and had ultimately failed to provide funds amounting to over Rs 150 crore (Rs 1.5 billion) for these transactions leading to a payment crisis that had affected share prices across the country.

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