HYDERABAD: The chairman and managing director (CMD) of city-based Karvy Stock Broking Limited (KSBL), C Parthasarathi, who is the main accused in the bank fraud cases, allegedly embezzled Rs 1,500 crore to other bank accounts while fooling them.
Officials at the Hyderabad Central Police Station (CCS) have registered five cases against him and they will file a full indictment shortly.
Police officers associated with the investigation team said they were getting further leads relating to bank fraud.
“A total of five cases have been registered with CCS, Hyderabad, based on complaints filed by three banks and two individuals separately. During the investigation, we found that a total of Rs 1,500 crore had obtained from different banks. They were diverted to personal and other accounts based on Parthasarathi’s instructions, “officials said.
CSC police received audit reports from bankers which were prepared on the basis of an internal report.
“Bank officials conducted a forensic audit in which officials accused CMD of committing criminal conspiracy and breach of trust by embezzling huge funds,” sources said.
Investigators are trying to find details of how the accused embezzled funds such as the incorporation of new businesses, investments in real estate by buying properties on benami names, transactions in digital mode, illegal cash transactions by hawala et al.
In addition to pledging customer shares as collateral in banks without their consent to obtain loans, the accused and his senior management allegedly created false documents and submitted them. Investigators found that a certain amount had been transferred to KSBL’s mat account showing regular financial activity.
It was also found that KSBL management illegally transferred Rs 1,000 crore to Karvy Realty between 2016 and 2019. A total bank fraud of Rs 2,900 crore was said to have taken place which Axis, HDFC, IndusInd and ICICI Bank have reported. Been the victims. The legal opinion that was submitted to the bankers by the KBL turned out to be a false one.
Series of events
KSBL duped IndusInd bank to the tune of Rs 137 crore, HDFC Rs 359 crore, ICICI Rs 563 crore,
August 20: CCS police arrested KSBL CMD C Parthasarathi.
August 25: The police take CMD into custody and question him.
September 2: Police arrested COO Rajiv Ranjan Singh and G Krishna Hari, CFO of KSBL.
September 22: KSBL Vice President and Chief Risk Officer Srikrishna Gurazada arrested in connection with illegal retailing in nine shell companies.