Mumbai: In an important ruling passed by the presiding officer of debt Recovery Tribunal (DRT) I, Mumbai, Ketan Parekh, Kiritkumar N Parekh and Kartik K Parekh and their 'group of companies' have been ordered and directed to pay a sum of Rs124 crore with interest now aggregating Rs207 crore to Bank of India with further interest.

The DRT has overruled all the defences sought to be raised by Ketan Parekh and others. The hearing of the suits were expedited by DRAT, Mumbai, and confirmed by the Bombay High Court and accordingly, matters were heard almost on day-to-day basis. In fact, the High Court had taken a very strong view of the frivolous applications filed by Ketan Parekh and others from time to time as being 'only with a view to delay the trial in the DRT'.

The High Court had on two occasions directed Ketan Parekh to pay compensatory costs to Bank of India for such delaying tactics. The DRT has also confirmed the 'orders of injunction' on all the assets of Ketan Parekh, his family members and 'group of companies' to continue in execution of decrees, which debars them from dealing with their properties and assets.

The 'payorder scam' had hit the country on March 8 and 9, 2001, when pay orders for Rs137 crore, issued by Madhavpura Mercantile Co-operative Bank Ltd. in favour of Ketan Parekh and his group of companies, were purchased by Bank of India but were dishonoured when presented for payment. This scam led to revealations of further scams including the bank drafts of Madhavpura Mercantile Co-operative Bank Ltd. in Gujarat to the tune of Rs800 crore.