HYDERABAD: The city-based Karvy Stock Broking Limited (KSBL) chairman and managing director (CMD) C Parthasarathi, who is the key accused in bank fraud cases, allegedly diverted Rs 1,500 crore to other bank accounts while duping them.
Hyderabad Central Crime Station (CCS) officials registered five cases against him and they will be filing a comprehensive charge-sheet shortly.
Police officials associated with the investigation team said that they were getting further leads in connection with the bank fraud.
"A total of five cases were registered with the CCS, Hyderabad, based on complaints by three banks and two individuals separately. During investigation we found that a total of Rs 1,500 crore was obtained from different banks. They were diverted to personal and other benami accounts based on instructions from Parthasarathi," officials said.
CCS police have received banker's audit reports that were prepared based on an internal report.
“Bank officials conducted a forensic audit in which the officials found fault with the CMD for committing criminal conspiracy and breaching of trust by diverting huge funds," sources said.
The investigators are trying to find details about how the accused had diverted funds such as incorporating new business, investments into real estate by purchasing properties on benami names, digital mode transactions, illegal cash transactions by hawala and others.
Apart from pledging shares of clients as collateral security in banks without their consent for obtaining loans, the accused and its core management allegedly created fake documents and submitted them. The investigators have found that some amount was transferred to the KSBL demat account by showing regular financial activity.
It was also found that the KSBL management illegally transferred Rs 1,000 crore to Karvy Realty between 2016 and 2019. Reportedly, a total bank fraud of Rs ,2900 crore took place in which Axis, HDFC, IndusInd and ICICI Bank were the victims. The legal opinion that was submitted to bankers by the KBL was turned out to be fake.
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 nabbed KSBL CMD C Parthasarathi.
August 25: Police took police custody of CMD and questioned him.
September 2: Police arrested COO Rajiv Ranjan Singh and G Krishna Hari, CFO of KSBL.
September 22: The vice-president and risk head of KSBL Srikrishna Gurazada arrested in connection with illegal retail trading in nine shell companies.
