Legal Correspondent

It is open to CBI to take him into custody

New Delhi: The Supreme Court on Tuesday declined to grant further time to Ketan Parekh, the prime accused in the 2001 Madhavpura Bank scam, for depositing Rs 26.43 crore, being an instalment due on May 1, 2008 as a condition for him to be out on bail.

As a Bench consisting of Justices Ashok Bhan and V.S. Sirpurkar dismissed Parekh’s application for extension of time, it is now open to the Central Bureau of Investigation to take him into custody.

The Bench also issued notice to Parekh on the bank’s application for a direction to him to pay a further Rs. 579.67 crore. It posted further hearing to August.

In its application seeking bail cancellation, the bank said Parekh perpetrated a massive fraud on it in 2001, siphoning off funds of small investors and depositors. Parekh was to pay about Rs. 396 crore in instalments and Rs. 26.43 crore was due as on May 1, 2008.

The bank pointed out that as per the May 2007 order, if he defaulted on depositing the instalment as per the court schedule, his bail “shall be deemed cancelled and he shall surrender to serve his sentence.”

The bank sought enhancement of the amount due from Rs. 396.41 crore to Rs. 949.67 crore, being the outstanding principal as of August 24, 2001. It said that despite his solemn promise of making the payment in three years, Parekh paid only Rs. 370 crore even after six years.