|
Ketan Parekh
seeks out of court settlement with Bank of India
By
Our Bureau
31 October 2001
Mumbai:
Ketan Parekh has sought an out of court settlement with
Bank of India. This was disclosed by Bank of India chairman
K V Krishnamurthy at a press conference while announcing
the bank’s second quarter
results on 29 October. He said Parekh’s counsel had asked
the debt recovery tribunal to postpone proceedings, which
was to be held on 24 October, in order to work out the possibility
of an out of court settlement. The next hearing is to be
held on 6 November 2001.
 Central
Bureau of Investigation has prosecuted Ketan Parekh on
charges of duping Bank of India of Rs. 137 crore.
Sources close to Ketan Parekh confirmed that he was exploring
possibilities of an out of court settlement and that negotiations
were underway. They said there was no difference on the
amount payable but Ketan Parekh was willing to pay back
Bank of India on condition that it withdrew its complaint
against him. They said Parekh’s other condition was that
the entire amount be repaid over a period of five years.
However the five-year repayment period is not acceptable
to the bank. The bank wants a collateral security and
 interest
at market rate on the outstanding amount.
The
main hurdle, according to sources close to both the sides,
is the criminal aspect of the case, which involves cheating.
Even if CBI withdraws the civil side of the case, it does
not have the power to take back the criminal case, which
can be done only by the government.
List
of reports on Bank of India
|
