Ahmedabad, Dec 04: Almost two-and-a-half years after Madhavpura Mercantile Co-Operative Bank (MMCB) scam rocked the entire co-operative sector in Gujarat, CBI has filed chargesheets against 12 accused, including Mumbai-based sharebroker Ketan Parekh, for allegedly defrauding the bank of a whopping Rs 1,030 crore. The chargesheet filed in the chief metropolitan court yesterday also names MMCB's former chairman Ramesh Parikh and ex-CEO Devendra Pandya for allegedly granting loans to the tune of Rs 984 crore by blatantly violating all set norms of RBI, prosecution sources told reporters here today.
While Ketan Parekh was allegedly extended a loan of Rs 778 crore, Mumbai-based chartered accountants Mukesh Babu and Shirish Maniyar were granted Rs 206 crore, according to the chargesheet.
Both Babu and Maniyar, who have been released on bail by the Gujarat High court, have also been chargesheeted.
The MMCB had violated all the RBI norms as its credit-deposit ration had reached 114 per cent between October 2000 to march 2001 and crossed 131 per cent, it is alleged.
The collapse of MMCB had a severe cascading effect on several other urban co-operative banks that succumbed to its liquidity crisis, leaving lakhs of people, mainly from the middle-class in lurch for their hard earned money.
Bureau Report