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BOI moves debt recovery tribunal against Ketan Parekh

The Debt Recovery Tribunal of Maharashtra and Goa has, in an interim order, restrained stock broker Ketan Parekh, his three companies and family members from disposing of, alienating or creating third party rights on their assets.

The order was delivered on Wednesday by presiding officer V D Deshmukh on three suits filed by Bank of India against Ketan Parekh and his group of companies for the recovery of Rs 1.37 billion allegedly siphoned off by them in a pay order scam.

The suits also seek attachment of assets belonging to Ketan Parekh group companies as well as the guarantors, including Ketan Parekh, Kirtikumar Parekh and Kartik Parekh.

The three companies of Ketan Parekh, which have been restrained from disposing of their assets are Panther Investrade Ltd, Panther Fincap Ltd and Classic Credit Ltd.

BoI's counsel Virag Tulzapurkar and Satish Shetye explained to the tribunal the details of alleged fraudulent transactions and the circumstances leading to the dishonour of pay orders by Madhavpura Mercantile Cooperative Bank, which had issued them despite lack of funds in the accounts of Ketan Parekh and his group.

The presiding officer, on being satisfied that prima facie case had been made out for the grant of interim reliefs, delivered an interim order to protect the bank's interest.

The defendants, including Ketan Parekh have also been directed to disclose their assets, movable and immovable, by filing an affidavit in the tribunal.

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