Chairman of Karvy Inventory Broking arrested for defaulting on financial institution mortgage

Chairman of Karvy Inventory Broking arrested for defaulting on financial institution mortgage

One of many promoters of scam-hit Karvy Group, was arrested right here on Thursday on fees of defaulting a financial institution mortgage, police stated.

C Parthasarathy was arrested for defaulting on a mortgage taken from the IndusIndbank in 2019 and diverting the fund to different financial institution accounts, Avinash Mohanty, Joint Commissioner of Police, (Detective Division) stated including there are two related circumstances towards him filed by HDFC financial institution.

In line with him, the HDFC financial institution additionally filed an identical grievance towards the Karvy group.

The banks of their grievance alleged that Karvy group represented by Parthasarathy unlawfully pledged the shares of its purchasers and availed loans. The mortgage quantities have been diverted to different companies and subsequently defaulted on compensation, the official added. HDFC financial institution in its grievance alleged that Karvy, in whole defaulted practically Rs 350 crore whereas it was about Rs 237 crore within the case of IndusInd Financial institution. In November 2020, Bombay Inventory Alternate declared Karvy Inventory Broking as a defaulter and eliminated the brokeragehouse from its membership after an identical motion was initiated by the Nationwide Inventory Alternate.

In November 2019, the regulator barred Karvy from taking new brokerage purchasers after it was discovered that the brokerage agency had allegedly misused purchasers’ securities to the tune of over Rs 2,000 crore.

(Solely the headline and movie of this report might have been reworked by the Enterprise Normal employees; the remainder of the content material is auto-generated from a syndicated feed.)

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