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CBI arrests BoI AGM

CBI on Tuesday arrested suspended Assistant General Manager of Bank of India B H Somaia in Bombay in connection with the Rs 1.37 billion pay order scandal in which prominent share broker and main accused Ketan Parekh was nabbed on Friday last.

Highly-placed agency sources told PTI that Somaia was arrested after intense grilling by the sleuths of Bank Securities and Fraud Cell. The sources said the official was picked up for questioning on Tuesday morning. He was among the two employees suspended by the BoI.

Somaiah is among the two senior officials of BoI's Stock Exchange branch suspended in connection with the pay order scam.

It was in this branch the pay orders presented by the companies allegedly belonging to Ketan Parekh were discounted.

Meanwhile, CBI has launched a massive manhunt to nab the absconding chairman and managing director of Madhavpura Mercantile Co-operative bank whom the agency is looking for in connection with the scam.

The sources said CBI teams had fanned out to various parts of Ahmedabad to nab him. CBI's Ahmedabad unit has also been pressed into service to nab Ramesh Parekh (chairman) and Dinesh Pandya (managing director).

The duo went absconding immediately after prominent stock broker and main accused in the pay order scam, Ketan Parekh, was arrested by the CBI on March 30.

About questioning of Kirti Parekh and Navin Parekh, the sources said the duo were still in the hospital and the agency sleuths were keeping a round-the-clock watch on them.

They said both of them, who have been named in the FIR, would be questioned and even arrested.

The sources said some more arrests were likely to take place soon.

They said CBI had also begun its probe into the account books of the Madhavpura Mercantle Co-operative Bank and alleged Ketan Parekh had caused a loss of Rs 8.43 billion to the bank in totality.

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