A Kolkata court on Tuesday extended for four days the police remand of former big bull Ketan Parekh in connection with the Rs 120 crore (Rs 1.20 billion) Calcutta Stock Exchange scam, even as it granted bail to another accused.

Chief Metropolitan Magistrate S C Misra extended the remand till February 1, accepting the contention of the public prosecutor that that was necessary for investigation.

Parekh had surrendered before the court here on January 20 after eluding the Kolkata Police for more than one and half month and had been remanded in police custody for eight days.

The court, however, granted bail to another accused Vinod Dalmiya for a bail bond of Rs 12,000 with two sureties.

Dalmiya had already spent 89 days in custody since his arrest.

Parekh had been named an accused along with 16 others in a FIR filed by CSE in September 2002 in connection with the default in payment in March 2001 which led to the countrywide crash of stock markets.

A special cell of the Kolkata police has been entrusted with the responsibility of investigating the case.

The Bombay Stock Exchange broker was first arrested on December 2 in Mumbai by a team of the Special Cell but he could not be brought to Kolkata as he fell ill at the Mumbai airport and had to be hospitalised.

Parekh subsequently secured interim bail from the additional CMM, Mumbai, which was twice extended later on condition that he would surrender before the CMM in Kolkata.

The Capital Market Crisis