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Ketan Parekh gets police custody till May 22

Tainted stockbroker Ketan Parekh, charged with swindling Rs 710 million of the European Investment Company, was on Wednesday remanded to police custody till May 22 by a Mumbai court.

Parekh's bail plea was also rejected.

The Economic Offences Wing of the Mumbai police alleged that Parekh was asked by the company to invest Rs 710 million in shares, but he did not do so and instead issued bogus contract notes.

Parekh was arrested earlier in the day. Confirming the arrest of three persons -- Ketan Parekh, his brother Kartik, and one Jatin Sarvai -- ACP-EOW Mumbai R M Sarnaik had said that the trio had been arrested in connection with a complaint registered by the European Investment Company.

The investor had complained that the trio had duped it of Rs 710 million in purchase of shares.

Parekh had earlier been arrested by the Central Bureau of Investigation on April 25, but was granted bail, which was later extended.

Parekh is the main accused in multi-million-rupee Madhavpura Mercantile Co-operative Bank scam after the Big Bull failed to deposit Rs 160 million as compensation for the small investors.

His luck ran out 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 last year.

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.

Additional inputs: PTI/UNI

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