Stockbroker Ketan Parekh sentenced to 2 years by CBI court

Ketan Parekh, an accused in several cases of stock market manipulation, has been convicted by a special CBI court in Mumbai for cheating and sentenced him to two years rigorous imprisonment.

"The Special Judge for CBI cases Mumbai has convicted Ketan Manharlal Parekh and sentenced him to undergo two years rigorous imprisonment with total fine of Rs 50,000," a CBI spokesperson said.

The court, however, acquitted a bank manager and other public officials in the case.

The case relates to cheating committed by Parekh in alleged criminal conspiracy with the then Senior Manager of NRI Cell and in charge of Safe Custody Department, Bank of Baroda, Mumbai, and others.

"It was alleged that the accused had abused their official position while functioning as such during 1989-1991 and conspired with Parekh," CBI said.

The spokesperson said CBI had charged the accused with cheating Bank of Baroda, Sir P.M. Road Branch, Mumbai, by obtaining the duplicate debentures in lieu of originals and by pledging the original debentures of a leading private company in the name of two NRIs which were purportedly lost from Safe Custody Department, Bank of Baroda, Mumbai Main office.

Loans facilities were then availed in the name of four associate firms of Parekh from Bank of Baroda, thereby causing loss to Bank of Baroda, the spokesperson said.

CBI filed the charge sheet 14 years ago in the Special CBI Court for criminal conspiracy, criminal breach of trust by public servant and cheating besides provisions of Prevention of Corruption Act against the four accused persons.

The court acquitted three other accused public servants while Parekh was convicted.