Ketan Parekh seeks out of court settlement with Bank of India

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 banks second quarter results on 29 October. He said Parekhs 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 Parekhs 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.