HYDERABAD: The Central Crime Station of Hyderabad city police, on Tuesday, arrested the Vice President and Risk Head of Karvy Stock Broking Pvt Ltd, Srikrishna Gurazada, in connection with illegal retail trading in nine shell companies. So far, the police have arrested KSBL CMD C Parthasarathy, COO Rajiv Ranjan Singh, CFO G Krishna Hari and Company Secretary Y Sailaja in connection with the multi-crore fraud case.
While Parthasarathy is believed to be the alleged mastermind behind the fraud, Rajiv Ranjan Singh along with G Krishna Hari unauthorisedly executed trading, in trading accounts of nine other companies between 2014 and 2019.
In November 2019, SEBI revoked the pledge of securities with banks and NBFCs, and returned the securities and accounts. As a result, IndusInd Bank was left with no collateral security. This resulted in Karvy Group defaulting on repayments to the tune of Rs 137 crore.Sailaja was arrested on charges of falsely creating the company resolution and misrepresenting the HDFC Bank to obtain loans.