HYDERABAD: Hyderabad city police registered a case against Karvy Stock Broking Limited (KSBL), its Chairman and Managing Director C Parthasarathy and promoters, on charges of cheating Axis Bank. The case registered in May, 2022, came to light on Tuesday.
Earlier taking Parthasarathy as guarantor, the bank sanctioned Rs 82.69 crore as Overdraft Against Securities, Rs 47.07 crore as Overdraft against Book Debts and Rs 26.06 crore as Loan Against Property. The amount invoked against bank guarantee was Rs 3,42 crore.
In total, KSBL has to pay an amount of over Rs 159 crore and interest to the bank. KSBL availed and utilised the financial facilities, but did not repay the amount dues which forced the bank to declare it as a Non-Performing Asset (NPA) in March, 2020. Later, after SEBI noted that KSBL had failed to comply with the guidelines, the trading activities of KSBL in capital markets, commodity markets were suspended.
In view of these, the bank reported the KSBL account as fraud and reported it to the police, following which a case was registered under Sections 406, 409, 420. Parthasarathy was booked in several cheating cases by the Hyderabad police and also the Enforcement Directorate. He is currently in judicial custody in ED cases.