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Money Changing
7th October, 2008 |
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50.25 |
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87.60 |
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| The story of Ketan Parikh ill-gotten wealth |
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KETAN PARIKH -> what a word and what a man, made millions in what a way, fantastic the man’s brains though criminal in bent should be marveled at the way he took many reputed institutions and banks for a long ride only to sent each of them packing to a cocoon in the end.
For sure some of the FIs and Banks will never be the same again. Hear this a classic story > Financial institutions Industrial Development Bank of India (IDBI) and Industrial Finance Corporation of India (IFCI) had extended loans of Rs 1,400-odd crore to companies known to be close to broker Ketan Parekh and this was the information which was furnished by the Reserve Bank of India to the Joint Parliamentary Committee (JPC), it says that a colossal sum of more than Rs 1,000 crore was advanced by IDBI to companies such as Global Telesystems (Rs 40 crore), Himachal Futuristic Communications Ltd (Rs 357.09 crore), SSI Ltd (Rs 71.75 crore), Satyam Computers (Rs 169.80 crore), Zee Telefilms (Rs 50 crore), Microwave Communication, an HFCL group company (Rs 20 crore) and HFCL Infotech (Rs 300 crore) and all these loans were in the form of rupee loans. The RBI has documented that in the case of HFCL, the disbursed amount at Rs 357.09 crore was higher than the sanctioned amount of Rs 253.15 crore and these advances were made after January 1999.
The RBI, in its presentations to the JPC, said that it proposed to inspect the accounts of the FIs to assess their exposure to the capital market and check whether any of the loans disbursed by them went into the stock markets and further, ICICI had extended corporate loans of Rs 60 crore to group companies of Zee Telefilms against a pledge of equity shares by the companies and had also advanced loans of Rs 200 crore to group companies of Ranbaxy Laboratories, again against shares pledged by Ranbaxy and according to the RBI, these loans are still outstanding.
The FI had also extended a loan of Rs 200 crore to group companies of HCL Technologies in 1999 against shares pledged but this amount has been repaid. Another FI, IFCI also made advances to the tune of Rs 86 crore, but most of these disbursements were via loans sanctioned in 1996 and 1998 and the companies to which the loans were made include DSQ Industries, HFCL and HFCL Satellite Communications Ltd. Both ICICI and IDBI had fairly large exposures to the equity market.
Between January 1, 1999 and June 28, 2001, ICICI invested Rs 444.65 crore in secondary market purchases of Global Telesystems, HFCL, HCL Technologies, HCL Infosys, NIIT Ltd, Pentamedia Graphics, Ranbaxy Labs, Satyam Computers, Silverline Industries, SSI Ltd, and Zee Telefilms and it realized a profit of Rs 93.6 crore from the sales of these scrips. IDBI, on the other hand, had invested Rs 37 crore in equities during the same period. It realized profits of Rs 75 crore from the sale of these shares, the bulk of the profit coming from the sale of HFCL shares.
Another sweet news > MMCB loans go to KP coffers
The Madhavpura Mercantile Co-op Bank, which was in the center of the controversy of the Rs 137 crore pay-order scam involving Ketan Parekh and Bank of India, has been found to have violated all norms in disbursing loans worth Rs 1,082.22 crore when it had sanctioned only Rs 299.95 crore, the Reserve Bank of India (RBI) has documented before the Joint Parliamentary Committee (JPC) and remember the infamous Bank of Karad of Bhupen Dalal fame a few years ago, its fate is all likelihood to sock the MMCB.
RBI said that an inspection of the Madhavpura's books revealed that out of the total amount advanced, Rs 843.57 crore pertained to companies in which Parekh or his close relatives were directors and Madhavpura is also said to have given loans to at least 18 entities between 1999 and 2000 which were found either to be linked to Ketan Parekh or were major share brokers in their own right, the RBI investigations showed. Among the more prominent names in the brokers list are -
Triumph International Finance, Mukesh Babu Securities, V N Parekh Securities Pvt Ltd, KNP Securities Pvt Ltd, Sai Mangal Investrade Ltd, N H Securities Ltd, Panther Investrade Ltd, Panther Fincap, Luminate Investment Pvt Ltd, SBM Investment, Maniar Financial Services, Mukesh Babu Financial Services, Mukesh Babu Management Consultancy, Mukesh Babu Stock Broking, Sagar Leasing, Nakshatra Software, Goldfish Computer and Chitrakut Computer.
According to RBI, while the books of accounts of the bank did not reveal any gross violation during 1998-99, two years later, the inspections revealed blatant violation of the lending norms as well as directives on granting loans and advances to share brokers and on March 13, RBI directed the bank not to accept fresh deposits or give fresh loans and also not to repay more than Rs 1,000 to any single depositor.
The Ahmedabad regional office of the RBI is also conducting a full-fledged inspection of the bank's books and a report is to be submitted shortly.
KETAN PARIKH -> the name would ring for generations to come and would displace with disdain the names of the famous Indian personalities over the years from their pedestal of high seats, and who knows could be as dreaded as the famous DON DAWOOD IBRAHIM. His story of milking millions would make for a good film script and some famous filmmaker should take the plunge and go ahead with a movie on the man KETAN PARIKH. |
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