Karvy Stock Broking CMD Accused of Cheating | Bombay News

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Mumbai Chairman and Managing Director of Karvy Stock Broking Limited (KSBL) has been convicted of allegedly cheating a 69-year-old Malabar Hill resident out of 1.13 crore.

Previously, on January 27, 2022, the Enforcement Department (ED) arrested C Parthasarathy and G Hari Krishna, Chief Financial Officer of Karvy Group in a case 2,000 crore security scam.

According to Worli Police, the complaint was filed by Sunil Bhandari, director of Ratnakar Impex Private Limited. According to Bhandari, in November 2019, he was approached by a Ramandeep Arora on behalf of Karvy Stock Broking Ltd. asking him to trade and invest in stocks through the brokerage firm for maximum profits.

As Karvy’s office was right next to his office at Mohatta Bhavan in Worli, Bhandari agreed to open a trading account and at Arora’s request even paid 1.13 crore via a check to invest in stocks.

Later, when the trading account was not opened, Bhandari learned that his form had been rejected by the company, so he started demanding the refund. However, he also learned that the Securities and Exchange Board of India (SEBI) had previously blocked Karvy from opening other trading accounts, a police officer said.

Following the complaint, the police convicted C Parthasarthy under 120B (criminal conspiracy), 406 (criminal breach of trust) and 420 (deception) of the Indian Penal Code (IPC). “We have just registered the offense and are investigating it,” said Anil Koli, senior police inspector at Worli police station.

Meanwhile, the ED had claimed in a statement in January that it had arrested Parthasarathy, Krishna Hari under the Prevention of Money Laundering Act 2002 (PMLA), in a money laundering case linked to the fraud committed by illegal misappropriation of clients’ securities by Karvy Stock. Brokerage Ltd worth 2,873.82 crore and pledging these securities to banks/NBFCs for loan seeking and subsequent default.

The ED initiated a money laundering investigation based on the FIR filed by HDFC Bank with CCS Hyderabad Police under various sections of the IPC for defrauding HDFC Bank.

The agency had further said that it uncovered a complex web of transactions engineered by senior management of the Karvy Group to misuse their clients’ securities and fraudulently raise loans which were then routed through several related companies and diverted from the agency. declared objective.

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