Ketan Parekh, Hiten Dalal get one-year jail for fraud

April 1st, 2008 - 5:41 pm ICT by admin  


Mumbai, April 1 (IANS) The Bombay High Court Tuesday sentenced high-profile stockbrokers Ketan Parekh and Hiten Dalal and five others to one year’s rigorous imprisonment for defrauding Canara Bank to the tune of Rs.470 million. Parekh, currently on bail, has been ordered to renew his bail within a week and granted time till July 31 to appeal.

Justice V.M. Kanade of the Special Court (Offences Relating to Transaction in Securities Act) sentenced two more co-accused to six months’ rigorous imprisonment.

Justice Kanade ruled that Parekh, Dalal - among the top stock traders in the late 1990s - and other associates including some officials of Canara Bank’s subsidiary, the Bangalore-based CanBank Financial Services (CanFina), entered into a criminal conspiracy to siphon off Rs.470 million belonging to the bank.

The prosecution contended that between October 1991 and January 1992, the money belonging to CanFina was transferred by default to the Canbank Mutual Fund’s accounts in Mumbai. Instead of returning the money to CanFina, the Canbank Mutual Fund transferred it to the accounts held by Parekh and others.

As a result, CanFina suffered losses amounting to Rs.470 million.

When contacted, Parekh’s lawyer Nitin Pradhan declined to comment on grounds that he was not handling “this particular case”.

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