Stocks

Karvy Group promoter held for defaulting on bank loans

Our Bureau Hyderabad | Updated on August 19, 2021

C Parthasarathy, promoter and MD, Karvy Group

C Parthasarathy, promoter and MD of Karvy Group, was arrested by the Central Crime Station here today on charges of defrauding several banks and evading payments.

According to sources, Parthsarathy was arrested for defaulting on a loan taken from IndusInd Bank in 2019 and for later diverting the funds to other bank accounts.

The Karvy Group is under scanner in other cases, too, including a similar case filed by HDFC Bank.

In their complaint earlier, the banks had alleged that the Karvy Group, through its stock broking arm, had pledged the shares of its clients and raised loans, the proceeds of which which were diverted to other firms.

Karvy defaulted on the loans, according to the complaint. While the Karvy Group had defaulted about ₹350 crore in the case of HDFC Bank, it was about ₹137 crore for IndusInd Bank.

The scam-hit Karvy Stock Broking was in 2020 declared a defaulter by the BSE and its membership as a brokerage was suspended.

It was also barred from taking new clients as it had allegedly misused over ₹2,000 crore worth of securities of its clients.

Published on August 19, 2021

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