Bombay High Court Sets Aside ₹27 Crore Deposit Condition For Former Stock Broker Ketan Parekh To Travel Abroad

The Bombay High Court has recently quashed an order directing former stockbroker Ketan Parekh, who is facing prosecution arising from alleged large-scale manipulation of the securities market in the late 1990s and early 2000s, to deposit Rs 27.06 crore as a condition for travelling abroad. A single bench of Justice N J Jamadar held that the Special Court's direction lacked a reasonable nexus with ensuring Parekh's presence at trial. The court observed, “A direction for deposit of the said amount appears to be a measure towards the enforcing the interim order and show cause notice dated 2 January 2025. However, the deposit of the said amount cannot be made a condition precedent for travel abroad in connection with the prosecutions which were initiated a decade ago.”Parekh is facing prosecution under the SEBI Act for alleged violations of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations. He had been granted bail on 6 April 2016, subject to a condition that he must seek prior permission from the Special Court to leave the country. According to material placed on record, Parekh had previously travelled abroad several times and complied with all directions relating to travel. On 14 October 2025, Parekh applied for permission to travel to Thailand between 5 and 9 November 2025 for a family vacation and to the UAE between 18 and 28 November 2025 for a family wedding. On 4 November 2025, the Special Judge allowed the application but required him to deposit Rs 27.06 crore referring to an ex parte interim SEBI order dated 2 January 2025 which held him and others jointly and severally liable to disgorge alleged wrongful gains of over Rs 65 crore. Out of this over Rs 38 crores had already been deposited by him and others. Therefore, the special court directed Parekh to deposit the balance amount of Rs.27.06 crore which had yet not been deposited in accordance with the ex-parte order.Senior Advocate Amit Desai, appearing for Parekh, submitted that the interim order had not attained finality and no proceedings under Section 28-A of the SEBI Act or prosecution under Section 24(2) had been initiated for recovery. He argued that imposing the disputed sum as a condition effectively negated the permission granted to travel. Senior Advocate Chetan Kapadia, appearing for SEBI, submitted that the condition was justified under the Code of Criminal Procedure and argued that Parekh had abused bail liberty by again engaging in alleged front running. The High Court found that the Special Judge had not recorded that Parekh was a flight risk and noted that the list of earlier foreign trips indicated compliance with travel conditions. The court said, “The condition falls foul of reasonability, proportionality and nexus with the object tests.” Subsequentlym It set aside the requirement to deposit Rs 27.06 crore and directed instead that Parekh must deposit Rs 5 lakh in each case as security, which would be forfeited if he fails to return to India on 29 November 2025."The impugned orders to the extent of the direction to deposit a sum of Rs.27,06,73,574/- to travel to UAE during the period 18 November 2025 to 25 November 2025 stands quashed and set aside."All other conditions imposed by the Special Judge remain unchanged.Case Title: Ketan V Parekh vs SEBI Case Number: WRIT PETITION NO.5854 OF 2025 For Petitioner: Senior Advocate Amit Desai with Advocates Nilesh Tribhuvann, Burzin Bharucha, Jhanavi Shah, Kaushal Popat instructed by White and Brief Advocates and Solicitors for Petitioner in WP No.5854 of 2025; Advocates Mohan Rao with Sulabha Rane, Sakshi B., Sangramsingh Parab, for Petitioner in WP No.5856 of 2025. For Respondent: Senior Advocate Chetan Kapadia instructed by Advocates Anubha Rastogi and Pooja Gera Click Here To Read/Download Order

Bombay High Court Sets Aside ₹27 Crore Deposit Condition For Former Stock Broker Ketan Parekh To Travel Abroad

Sahyaja MS

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Bombay High Court Sets Aside ₹27 Crore Deposit Condition For Former Stock Broker Ketan Parekh To Travel Abroad

Sahyaja MS

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

This is a premium content
Available exclusively to
Our subscribers