MMCB to refund Rs 200 crore by August

Bank hopes to receive Rs 384 crore from Ketan Parekh

The scam-tainted Madhavpura Mercantile Co-operative Bank (MMCB) will have to repay more than Rs 200 crore to around 13,000 depositors by August this year if it receives around Rs 400 crore from the Ketan Parekh Group of Companies as directed by the Supreme Court.

"We expect to refund Rs 200 crore to 13,000 depositors by this August, if Ketan Parikh deposits Rs 384 crore before August 2004, as committed to the court." said B K R Maruthy, chief executive officer of the bank. So far Ketan Parekh as deposited only Rs 6 crore.

"We have appealed to the Supreme Court to cancel the bail granted to Ketan Parikh as a lot of public money is at stake" said Maruthy. The bank has been paying interest to all the depositors on an half yearly basis without fail since February, 2002.

The bank is also planning for the modification of the revival scheme with the Registrar of Co-operatives and has also met the Reserve Bank of India in this regard.

With the help of the Securitisation Act, the bank has expedited recovery by attaching over 15 property of the defaulters. The bank has taken various recovery measurers like one-time settlement scheme among others.

The bank has even filed about 79 criminal cases with the state authorities and about 19 cases with the Central Bureau of Investigation (CBI) against the Ketan Parekh and his group. Cases against all the defaulters, who owe more than Rs 1 crore to the bank, have been filed the bank official said.

"The bank has recovered more than Rs 200 crore in the last two year, which is the best recovery effort amongst the co-operative banks throughout the country." said Maruthy.

In all, defaulters owed Rs 2,000 crore to the bank. While Ketan Parekh owed Rs 1,200 crore and Rs 200 crore by Ketan Parekh Group of Companies. The bank is concentrating more recovery from the non-Ketan Parekh group of companies and expects to recover a sizable amount to pay back dues to its depositors before the stipulated time.

Parekh who was earlier arrested by the Criminal Investigation Department (CID) of Gujarat police and subsequently picked up by the Central Bureau of Investigation (CBI) on August 10, 2001, had given an undertaking before the Court of the Chief Metropolitan Magistrate in Ahmedabad that he would pay back at least Rs 380 crore to the MMCB by 2003. He was later released on the bail following his assurances given before the Court.