One of the promoters of scam-hit Karvy Group, was arrested here on Thursday on charges of defaulting a bank loan, police said.
C Parthasarathy was arrested for defaulting on a loan taken from the IndusIndbank in 2019 and diverting the fund to other bank accounts, Avinash Mohanty, Joint Commissioner of Police, (Detective Department) said adding there are two similar cases against him filed by HDFC bank.
According to him, the HDFC bank also filed a similar complaint against the Karvy group.
The banks in their complaint alleged that Karvy group represented by Parthasarathy unlawfully pledged the shares of its clients and availed loans. The loan amounts have been diverted to other firms and subsequently defaulted on repayment, the official added. HDFC bank in its complaint alleged that Karvy, in total defaulted nearly Rs 350 crore while it was about Rs 237 crore in the case of IndusInd Bank. In November 2020, Bombay Stock Exchange declared Karvy Stock Broking as a defaulter and removed the brokeragehouse from its membership after a similar action was initiated by the National Stock Exchange.
In November 2019, the regulator barred Karvy from taking new brokerage clients after it was found that the brokerage firm had allegedly misused clients’ securities to the tune of over Rs 2,000 crore.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
