I am the victim of circumstances: KP

Our Economic Bureau

New Delhi, Jan 3: I am a victim of the circumstances,” pleaded Ketan Parekh, the main accused in the multi-crore securities scam of last March, while deposing before the joint parliamentary committee here on Thursday.

The disgraced big bull told the joint parliamentary committee that he had no intention of manipulating the capital markets or indulging in circular trading, adding he got entangled a the vicious cycle leading to payment crises.

On his borrowing of Rs 888 crore from the Madhavpura Cooperative Bank, far in excess of the prescribed credit limit of Rs 205 crore, he said, “we were an old client of the bank and there was a lot of trust between us. However, due to vicious cycle of payment crisis we failed to return the money in time.”

Ketan Parekh’s brother with lawyers at Parliament annexe on Thursday. Photo by Raaj Dayal

The disgraced big bull, JPC chairman PM Tripathi told the press, also submitted a 31-page statement to the committee along with a plethora of annextures explaining his side of the story. His replies, said the JPC chief, were in response to the queries raised by the JPC members about his involvement in the scam.

He also told the panel that three of the 23 companies mentioned by the Sebi, did not belong to him. Rest of the companies, he admitted were his. However, he failed to satisfy the JPC about the influence he exerted over the day-to-day functioning of the companies alleged to have played a critical role in the stock scam.

In his statement, the big bull explained how the Bombay Stock Exchange, the fifth largest in the world, moved in tandem with the world markets. He said there was nothing unusual in the stock market movement as increase in share prices was a world phenomenon.

On the payment of more than Rs 3,000 crore to Kolkata brokers, he said the amount was given to them for investment in trading and meeting their losses.

Mr Tripathi also said because of lack of time, the questions relating to banking operations by the disgraced big bull could not be taken, adding he would be called again for completing the deposition. First Global’s Shankar Sharma will depose before the JPC on Friday.