Bank of India took the bull by the horn last year. Now it is set to strike a compromise deal with Ketan Parekh to recover its Rs 130 crore lost in the Madhavpura Cooperative Bank pay-order scam.
According to sources, the negotiations have reached the final stage and the deal is likely to be signed any day now, possibly before the end of this financial year. When contacted, Bank of India chairman KV Krishnamurthy confirmed that negotiations were on but said the deal had yet to be sealed. He refused to divulge details of the settlement.
According to sources, Parekh is expected to pay Rs 25 crore upfront and settle the rest of the amount over the next four years with a one-year moratorium at an interest rate linked to the bank
