Mumbai The chairman and managing director of Karvy Stock Broking Limited (KSBL) has been booked for allegedly cheating a 69-year-old Malabar Hill resident to the tune of ₹1.13 crore.
Earlier, on January 27, 2022, the Enforcement Directorate (ED) had arrested C Parthasarathy and G Hari Krishna, CFO of the Karvy Group in a ₹2,000 crore Security Scam.
According to the Worli police, the complaint has been lodged by Sunil Bhandari, a director of Ratnakar Impex Private Limited. According to Bhandari, in November 2019, he was approached by one Ramandeep Arora on behalf of Karvy Stock Broking Ltd., requesting him to trade and invest in shares through the broking firm for maximum profits.
As the office of Karvy was just beside his office at Mohatta Bhavan at Worli, Bhandari agreed to open a trading account and on the request of Arora even paid ₹1.13 crore via a cheque to invest in shares.
Later, when the trading account was not opened, Bhandari learnt that his form was rejected by the firm, so he started demanding the money back. However, he also came to know that the Securities and Exchange Board of India (SEBI) had already stopped Karvy from opening any further trading accounts, said a police officer.
Acting on the complaint, the police have booked C Parthasarthy under 120B (criminal conspiracy), 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code (IPC). “We have just registered the offence and are looking into it,” said Anil Koli, senior police inspector of Worli police station.
Meanwhile, the ED had claimed In a statement in January that it arrested Parthasarathy, Krishna Hari under Prevention of Money laundering Act (PMLA), 2002, in a money laundering case connected with the fraud committed through illegal diversion of clients’ securities by Karvy Stock Broking Ltd worth ₹2,873.82 crore and pledging of these securities with banks/ NBFCs for seeking loans and subsequent loan default.
The ED started money laundering investigation based on the FIR filed by HDFC Bank with CCS Hyderabad Police under various sections of IPC for defrauding HDFC Bank.
The agency had further said that it uncovered a complex web of transactions designed by the senior management of the Karvy Group to misuse the securities of their clients and to raise loans fraudulently which were then rotated via multiple related companies and diverted away from the stated purpose