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Ketan Parekh remanded to CBI custody till Aug 24

Stock broker Ketan Parekh, held in a case filed by Madhavpura Mercantile Co-operative Bank for alleged fraud and misappropriation of public funds, was on Saturday further remanded to CBI custody till August 24.

Parekh was brought from Bombay by a CBI team and produced before chief metropolitan magistrate Smitaben Shah who remanded him to CBI custody till August 24.

Parekh's counsel A D Shah questioned the jurisdiction of the court before whom his client was produced. Shah said Parekh should have been produced before a court in Bombay as he was arrested by the Central Bureau of Investigation there on August 10.

On August 11, Parekh was produced before a local court which remanded him to police custody till August 18. He was taken to Bombay for investigation.

On March 30, Ketan was arrested in a Rs 1.37 billion pay order scam on a complaint filed by Bank of India. He was released on bail on May 21.

Bank of India had alleged that pay orders issued by MMCB's Mandvi branch in Bombay in favour of Ketan's firms bounced but the money was credited to the account of the beneficiaries. BOI thereby suffered a loss of Rs 1.37 billion.

MMCB filed a separate case in Ahmedabad alleging fraud and misappropriation of funds by some companies including those belonging to Ketan Parekh. The bank alleged that huge amount of money had been drained out.

In the case filed by MMCB, Parekh feared arrest and hence moved the Bombay high court for bail.

However, his plea was turned down.

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