Stories By Shubham

There would hardly be anyone from the 1990s who wouldn't have heard about this infamous bank and its scam. Well, if you haven't heard about it, here's what happened:

This disreputable scam became the talk of the town in 2001 when the Managing Director and former chairman of the bank were accused of allegedly favoring Ketan Parekh and giving him and his accomplices a total loan of over "1000 crores". This money was supposedly used for trading and investing, and Ketan got into legal trouble when this alleged loan came into the public eye. Ketan could not repay that loan at that time (in the early 2000s), and thus, the bank had to close down. This Cooperative Bank started in Gujarat, got its license from RBI in 1994, and lost its license to operate after this scam.

The Scam of Madhavpura

Ketan Parekh, the known "Big Bull" of the stock market, allegedly got a loan of quite a heavy sum from the Madhavpura bank and could not return the money in due time. The bank had to close down as it could not recover the money it gave to its borrowers, and as per the legal proceedings, Supreme Court (in 2007) ordered Ketan Parekh to pay the money he owed to the bank in the form of monthly installments of 26 crores.

The famous part of this scam's story ends here because what happened afterward and if Ketan was able to repay the money is the truth that is only known to some people.

The Truth Behind The Scam

Here comes the lesser-known truth:

Following the court orders and being a law-abiding citizen, Ketan Parekh returned a whopping amount and fulfilled his obligations as set by the Supreme Court. Sadly, no one was interested in knowing this; it remained a lesser-known fact for years.  

Ketan went behind bars and worked relentlessly for years to return the money he owed. He is still working on these corrective measures and is doing what's right.  

When Ketan Parekh was convicted for borrowing a huge sum of money from the bank, he had many choices at the time. It was easy to elope with a huge amount of money and settle somewhere in the world where life could have been easier. There could have been less judgment, and Ketan could have lived a stress-free life. However, the choices he made certainly put him in a difficult position. He had to face a sentence and spent a significant amount of time behind bars. What was disheartening for him was that after following all the legal orders given to him by the country's judicial system, he was still being judged for making a menace.  

One of the facts missed here is that the judicial system is in place to ensure that when someone makes a mistake, they are given an apt punishment for it and are asked to work on the corrective measures to reverse the damage they caused.