Hyderabad: Cases Filed Against Karvy Stock Broking Firm

Two cases have been registered against popular stock broking firm, Karvy in CCS Hyderabad. According to the reports, Karvy used the shares of the customers for its own purposes. Hyderabad CCS registered cases of fraud against Karvy for allegedly misappropriating Rs 383 crore. Karvy has taken loans from the private banks and now cases have been registered against the stock broking firm.Two banks separately raised complaints against the Karvy and alleged that the company has taken loans by mortgaging the shares and now is not repaying the loans.

HDFC and IndusInd Banks have complained to police and asked to take legal action against the company. CCS Police are investigating the case in all the possible angles to know the actual truth.

Karvy Stock Broking Ltd took a loan of Rs 185 crore from IndusInd Bank in 2019 through securities and bank guarantees and failed to repay the loan. IndusInd Bank officials have lodged a complaint with the police alleging misappropriation of nearly Rs 138 crore. SEBI (Securities and Exchange Board of India) recently announced that Karvy had taken the loans from the banks based on the shares related to investors and misused them.

HDFC Bank Deputy Vice President Srinivas Ayyagari had lodged a complaint with the CCS police stating that Karvy Directors Parthasarathy, Sivaramakrishna Mullapuri, Rajat Parthasarathy and Sushilkumar didn't pay Rs 246 crore loan money. He further added that, In September 2019, Karvy had taken a loan of Rs 350 crore by mortgaging shares of the investors and the company didn't pay Rs. 208 crores.