A Kolkata court on Wednesday rejected the bail application of former Calcutta Stock Exchange president Kamal Parekh and remanded him in judicial custody till July 7.
Parekh has allegedly been involved in the Rs 120 crore (Rs 1.2 billion) scam at CSE that came to light in March 2001.
He was arrested on June 10 and has been in police custody till date.
The public prosecutor told CMM S C Mishra that further custody of Parekh was required as fresh developments had taken place during the time he was in police custody.
He said several documents had been seized, which showed Parekh's alleged connivance with the three main conspirators in the scam.
Parekh was accused of releasing Rs 2.40 crore (Rs 24 million) on March 7, 2001, from the exchange's margin account of one of the three alleged main conspirators, Harish Chander Biyani.
Parekh had pleaded that he had released the funds in consultation with committee members to facilitate pay-out so that a payment crisis could be averted and the exchange saved.
