Cyberabad cops seek eight-day custody of Karvy chief

HYDERABAD: The Cyberabad police who are investigating the Karvy Stock Broking Private Limited (KSBL) loan fraud case of Rs 563 crore reportedly sought a prison transit warrant from the local court for the custody of C. Parthasarathy, chairman and managing director.

The police had booked the case on a complaint by ICICI Bank which alleged that KSBL had availed credit facilities by pledging securities/shares of their clients and defaulted to the tune of Rs 563 crore.

Earlier, Parthasarathy was taken into custody for four days by the Central Crime Station (CCS), Hyderabad, on August 26, 27, 29, and 30. Subsequently, the police sent him to judicial custody.

Now, it is the turn of the Cyberabad police to investigate the case further. "On Tuesday, the Economic Offences Wing (EOW) of Cyberabad sought a prison transit warrant from court for the custody of Parthasarathy for eight days," said a senior Cyberabad police officer.

It is learnt that the police have prepared a detailed questionnaire regarding the money trail and are ready to administer it as soon as they get a nod from the court.

ICICI Bank also named M. Yugandhara Rao and M. S. Ramakrishna, promoters of KSBL. The main allegation against them is that the KSBL availed credit facilities from the ICICI Bank by pledging securities/shares of their clients in contravention to the Securities and Exchange Board of India (SEBI) guidelines. The company became defaulter by diverting the funds into connected businesses entities namely Karvy Realty Company, said the Cyberabad police.