Hyderabad: After almost three months of investigation into alleged financial irregularities by the Karvy Stock Broking Ltd (KSBL), investigators have found that the company collects RS 137 Crore loans from Indus Bank by promising shares of their clients and divert loans to 142 companies, including 22 subsidiaries .
They also found that the stock broking company was allegedly misused money from his client.
Central Crime (CCS) Station, Hyderabad, officers recently submitted a 65-page court sheet in the Nampelal Court against Karvy, represented by the Chair and Managing Director (CMD) C Parthasarathy and eight others, based on complaints submitted by Indus Bank and 15 client.
The bank accused Parthasarathy and eight others, who held the top managerial position, from the default on loan RS 137 Crore.
Apart from the bank, 15 KSBL clients, which park their money to share trade, also claim that they were cheated by stock broking companies.
The company has also been accused of making documents.
‘Apart from 22 COS, 120 other companies received funds transferred in two forensic audit reports from various institutions, CCS officials found that KSBL mainly 22 subsidiaries where Karvy Real Estate Services Ltd.
(Kresl) is a key company.
“Apart from 22 companies, we found 120 other companies also received funds transferred.
This diversion has been going on since 2013.
The origin of the flow of funds to these companies during these years came from KSBL,” said a investigation.
From KSBL, first diverted to the Kresl company or 21 subsidiaries.
From these companies, it gets diverted to 120 other related companies.
While analyzing the nature of these subsidiaries, officials have found that these companies, who carry out business operations in solar power projects, insurance broking, data management, consulting, computer services and other services, become bankrupt.
“Stock trading is extensively through these subsidiaries, especially nine insurance broking companies.
In the last six months before the Indian Securities and Exchange Council (SEBI) have started actions against KSBL in 2019, ₹ 480 crore trading is done and then they express disadvantages of ₹ 300 Crore.
Another finding is that money is transferred into Parthasarathy’s personal story and his colleagues, who commit trade from this account, “an official said.
Although Parthasarathy can secure collateral in cases registered by the police, he is still behind the bar in Karnataka.
Nine cases, including five in Telangana, were registered against KSBL heads and other top management.