Hyderabad: The Central Crime Station (CCS) police here has filed 5,000 page charge sheet against officials of the Karvy Stocks Broking Limited (KSBL) in a second case for cheating investors of Rs 15 crore.
The firm’s Managing Director, C Parthasarthy along with six other executives have been accused of fraud, and were booked in other cases (by Hyderabad and Cyberabad police) for cheating investors of about Rs 2000 crore.
According to the police, the accused diverted the money, and used it for personal purposes without the knowledge of the investors. Parthasarthy and the co-accused were booked by the police based on a complaint by 12 investors.
The CCS filed the charge sheet and informed the court of the tactics used by the accused to dupe the investors.
The Karvy Fraud case
The CCS police had filed a charge sheet in the matter, following which the Enforcement Directorate, after initiating a PMLA probe, took a copy of the charge sheet and other relevant documents to probe the money laundering case. The ED also took reports of Income-Tax, RBI, SEBI and NSE to make their case a strong one.
It has been alleged that Karvy Stock Broking Limited (KSBL) management allegedly committed bank frauds of several hundred crores of rupees. The firm took loans from various banks like ICICI and Indus Bank.
IndusInd Bank gave a loan of Rs 137 crore to KSBL on the basis of securities, shares and personal guarantees. One of the guarantor was chairman of KSBL, C. Prathasarathy. They suppressed the fact that the pledged securities belonged to customers.
All the securities were transferred to the Demat account of KSBL and pledged before the IndusInd bank for margin and short term requirement in their businesses. HDFC Bank has also alleged that KSBL took a loan of Rs 329 crore by illegally pledging the securities of their clients. Later they transferred the case.
The ED also learnt during the probe that in between 2016 and 2019, KSBL allegedly transferred Rs 1,000 crore to Karvy Realty company.
In September last year the ED had conducted raids at different addresses belonging to KSBL. The ED had also frozen shares of Karvy Group.
The ED has gathered a lot of incriminating documents and is probing the matter.
With inputs from IANS
