rediff.com: Ketan Parekh, 2 brokers' bail plea rejected

Sessions judge R B Malik on Monday rejected the bail plea of tainted brokers Ketan Parekh, Kartik Parekh and Jatin Sarvaiyya, held on the charge of swindling Rs 830 million from a Mauritius-based company.

The trio had been arrested by the economic offences wing of Mumbai police on May 15 on the charge of misappropriating Rs 830 million of European Investments Ltd. They were remanded to police custody till May 22 and their bail plea was rejected by a magistrate. The brokers then decided to move a sessions court for liberty.

On May 18, Ketan and others alleged before a magistrate that police had beaten them up and asked them to sign certain documents or else face prosecution in similar cases.

Urging for bail, defence counsel Amit Desai, Prenov Badheka and Amol Chougale argued that their clients had admitted their civil liability and hence custodial interrogation was not necessary. They assured that Ketan and others would cooperate with the police in the probe.

Opposing their bail, special public prosecutor Harshad Ponda argued that custodial interrogation of the brokers was necessary because they were capable of influencing witnesses and tampering with evidence.

Investigations were in the initial stage and police needed time to determine who had forged the contract notes as well as to trace the misappropriated funds, he submitted.

As regards the allegation of the brokers that they were ill-treated by the police, the prosecutor said this was being done to hamper investigations.

He said the custody of the brokers was needed as police had to find out from them the whereabouts of the fourth accused Dharmesh Doshi who is allegedly absconding.

Defence counsel Amit Desai, on the other hand, argued that Doshi had left India with his family on a holiday and was expected to return in June. Ketan and others could not be held as hostages for Doshi's return, he said.

Desai ruled out the possibility of the accused tampering with evidence. He said on May 15 the police had sealed the offices of Triumph International Finance Ltd with which the accused were connected. On May 18, the offices were de-sealed suggesting that police had taken all the necessary documents.

The court heard the arguments for two days from May 19. The judge specially sat on Sunday to hear the parties.

Ketan, Kartik and Jatin, Directors of Triumph International Finance (India) Ltd, were arrested on the basis of a complaint filed by Briyanand Chaturvedi, constituted attorney of European Investments Ltd.

The company purchased and sold shares through Ketan's firm. In February last year, European Investment Ltd had placed an order with Triumph Investment Ltd to sell 550000 shares of Global Tele and 350000 shares of Himachal Futuristic. For this transaction, the company was to receive Rs 830 million, the complaint alleged.

Ketan's firm issued cheques to meet their liability. However, these cheques were dishonoured.



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