A Kolkata court on Friday rejected the bail prayer of former Calcutta Stock Exchange president Kamal Parekh and extended his police custody till June 24 in connection with the Rs 120 crore (Rs 1.2 billion) scam in the bourse that came to light in March 2001.
Chief Metropolitan Magistrate S C Misra refused to acknowledge the submissions of Parekh's counsel that his client was the honorary president of the exchange at that time and had released the funds in consultation with other committee members.
The magistrate agreed with the public prosecutor's contention that some new developments had taken place during Parekh's interrogation in custody.
Parekh was arrested on June 10 for his alleged role in releasing Rs 2.40 crore (Rs 24 million) from the margin account of Biyani Securities Private Ltd, a CSE firm, on March 7, 2001 that led to the announcement of payout by the exchange.
The public prosecutor also said that Securities and Exchange Board of India had observed that had the trade entered into by Harish Chander Biyani on February 27, 2001 been expunged and payout of March 7, 2001 stopped, the size of the scam would have been much lower.