In a significant development, a special court in Mumbai has imposed strict conditions on former stockbroker Ketan Parekh, requiring him to deposit a substantial amount of ₹27.06 crore with the Securities and Exchange Board of India (SEBI) before being permitted to travel to the United Arab Emirates.
The ruling came from Special Judge M G Deshpande, who was hearing an application filed by Parekh seeking permission to visit the UAE. The court's decision underscores the ongoing legal scrutiny surrounding the high-profile securities fraud case that has been haunting Indian financial markets for years.
Court's Stringent Conditions
The special court didn't merely grant travel permission but attached several crucial conditions to ensure Parekh's compliance with legal proceedings:
- Mandatory deposit of ₹27.06 crore with SEBI before departure
- Submission of detailed travel itinerary including flight details and accommodation
- Strict adherence to the specified travel dates
- Regular updates to investigating authorities during the overseas stay
Background of the Case
Ketan Parekh, once a prominent figure in Indian stock markets, has been facing multiple legal battles related to securities fraud allegations. The Central Bureau of Investigation (CBI) has been pursuing the case, which involves substantial financial irregularities that shook investor confidence in Indian markets.
The current requirement of depositing ₹27.06 crore with SEBI reflects the seriousness of the allegations and the authorities' determination to secure potential financial liabilities arising from the ongoing investigation.
Legal Implications and Market Impact
This court order sets an important precedent in handling financial fraud cases involving high-profile individuals. The condition of depositing significant funds with regulatory authorities before international travel demonstrates the judiciary's approach to balancing individual rights with the need to protect public financial interests.
The development has reignited discussions about corporate governance and regulatory oversight in Indian financial markets, serving as a reminder of the early 2000s stock market scandal that continues to have legal repercussions decades later.
Legal experts suggest that such stringent conditions indicate the court's cautious approach in dealing with financial fraud cases, especially when the accused individuals have international connections and substantial assets abroad.
