Central government files affidavit in Karvy fraud case
The Central government told the Telangana High Court that it has supported the Serious Fraud Investigation Office (SFIO) probe against Karvy Stock Broking Company since public interest is involved in it. The company was allegedly involved in financial irregularities which affected interests of thousands of depositors, it noted.
In this regard, the Centre has filed counter affidavit before the division bench of Chief Justice Raghvendra Singh Chauhan and Justice B Vijaysen Reddy dealing with appeals filed by Karvy challenging the order of a single judge, who had dismissed its two petitions challenging the decision of Ministry of Corporate Affairs in ordering SFIO probe into alleged financial irregularities at Karvy in June this year.
In September, the bench stayed the probe on the ground that the authorities concerned had not followed the required procedure before ordering probe. The bench had directed the Centre to file its counter. On Wednesday, the bench directed the appellant Karvy to file its reply and adjourned the hearing by three weeks.