HYDERABAD: Bank officials who sanctioned loans for Karvy are under the radar of the Hyderabad police who are investigating the Karvy Stock Broking Private Limited (KSBL) loan fraud case. As part of the investigations, the police summoned Yugandhar Meka, one of the directors of KSBL who has been named in the loan fraud cases. However, he sent his lawyer, following which the police asked him to present himself.
According to the police, Yugandhar was summoned earlier for questioning during which he claimed innocence and denied allegations. Subsequently, he was called for questioning on Monday.
The KSBL had availed loans of Rs 137 crore and Rs 350 crore from IndusInd and HDFC banks respectively by pledging the shares of its clients illegally and defaulted. It is learnt that the Hyderabad police are examining the role of bank officials in the KSBL loan fraud cases. “We are investigating the cases and after a thorough probe only we can get to understand the role of bank officials in the fraud," said police officials who are privy to the investigation.
The directors of KSBL Comandur Parthasarathy, Yugandhar Meka and Bhagwan Das Narang reportedly availed several credit facilities from the HDFC Bank in the form of loan against shares (LAS), issuers risk (sublimit of LAS), drop line overdraft, cash credit, bank guarantee and short-term loan since 2003 which were being renewed or enhanced from time to time.
As of December 2019, the aggregate LAS facility extended by the complainant bank to the KSBL is to the tune of Rs 350 crore which was defaulted.
Likewise in the second case of IndusInd bank, the KSBL availed credit facilities of Rs 137 crore from the complainant bank by pledging securities/shares and personal guarantee of chairman and MD Parthasarathy by suppressing the facts that the pledged securities belonged to the clients and they did it without their consent and misusing power of attorney (PoA). So far, four cases were registered against the KSBL in Hyderabad and Cyberabad commissionerate limits based on the complaints from three banks - IndusInd, HDFC and ICICI.
Based on the complaints, the police investigated the case and arrested the main conspirator, Parthasarathy. Further investigation is underway.
