HYDERABAD: The Central Crime Station (CCS) of Hyderabad police filed a 5,000-page chargesheet in connection with a fraud pulled off by the Karvy Stock Broking Limited (KSBL), cheating investors of `15 crore. This is the second case in which the CCS has filed a chargesheet against KSBL.
The company, its CMD C Parthasarathy and six other chief functionaries are accused of fraud, where they diverted shares of investors without their knowledge. These were invested in other businesses and sister concerns, without the consent of investors. A case was earlier registered against KSBL and other accused on a complaint from 12 investors. The CCS, in the chargesheet, informed the court how the accused pulled off the fraud.
Earlier, the CCS registered five cases against KSBL and its functionaries for diverting the shares. A chargesheet was filed in the first case in which KSBL cheated two banks by pledging securities belonging to its clients. The securities were then transferred to demat accounts of KSBL, pledged before the banks by suppressing the fact that they didn’t have consent from the clients concerned.