Mukesh Babu, a stockbroker, says the Rs214.12 crore loan given to him
was actually payment for shares he had bought for bank’s then chairman.
A key accused of the Madhavpura Mercantile Cooperative Bank case, Mukesh Babu, has denied that the Rs214.12 crore given to him by the bank was a loan. In a discharge plea filed recently in the special CBI magistrate court, Babu has claimed that the money was actually payment in return for shares worth crores of rupees he had bought for the then chairman of the bank, Ramesh Parikh.
Babu, who is a Mumbai-based stockbroker, has further alleged that the bank had gone bust because it had violated RBI norms.
His account in the bank shows that he had taken a loan of Rs 214.12 crore from the MMCB but the stockbroker has claimed that he had taken no loan but was given the money in his capacity as stockbroker.
Babu is one of the key accused in the case filed by the CBI in connection with the MMCB scam. The investigating agency has alleged that Babu, along with other defaulters of the bank, had entered into a conspiracy with the connivance of the bank’s office-bearers and had caused the bank’s collapse.
In his discharge plea, Babu has alleged that Ramesh Parikh, the then chairman of the bank who was also chairman of M/s Madhur Capital and Finance, had asked him to purchase shares on his behalf. Bapu has claimed that he was paid for the shares through the bank which had falsely recorded the payment as loan. Therefore, the case against him is false and he had been mischievously implicated in the case, Bapu has asserted.
The bank, however, has denied Bapu’s allegation in its affidavit and stated that Babu had taken the loan from the bank in the name of his five companies - Mukesh Babu Securities Ltd, Mukesh Babu Financial Services Ltd, Mukesh Babu Management Consultancy Pvt Ltd, Mukesh Babu Stock Boracking Pvt Ltd and Sagar Leasing Co. Ltd. The CBI has also opposed the discharge plea stating that Babu is one of the key conspirators of the scam and cannot be discharged from the case.
Babu’s lawyer concluded his argument before the court on Saturday. The CBI’s advocate and the advocate for the bank would continue with their arguments on November 25.
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