HYDERABAD: Paving way for the Serious Fraud Investigation Office (SFIO) probe into alleged financial irregularities at Karvy Stock Broking Limited Company, Justice A Rajasheker Reddy of Telangana High Court on Wednesday dismissed the two petitions filed by the financial services firm, challenging the decision of Ministry of Corporate Affairs (MCA) in ordering SFIO probe and issuance of notices to the company on June 16 and 19 this year.
On February 27 this year, the MCA directed the SFIO to investigate not only into the affairs of Karvy and its group companies but also nine other entities, including Wizard Insurance Services, Zenith Insurance Services, Buoyant Insurance and Nova Wealth Management Services.
Justice Rajasheker Reddy rejected the argument of senior counsel S Niranjan Reddy, appearing for petitioner company, who submitted that the ministry has taken the decision without following due process of law, without proper enquiry and without giving an opportunity to be heard.
The judge dismissed the two petitions by taking into consideration the submissions of Assistant Solicitor General N Rajeshwar Rao, appearing for the Central government, that the action of the petitioner company has affected the interests of more than 90,000 depositors.