According to the complaint lodged by the bank, the accused brokerage firm availed a credit facility of Rs 137 crores from the complainant bank by pledging securities and personal guarantee of Parathasathy. However it suppressed the fact that they actually belonged to the clients, the police said.
“In the said case, this was done without their consent and misusing the power of attorney. The securities were transferred into the demat account of KSBL and pledged before the bank for margin and short term requirement in the business of KSBL from March, 2013,” the police said in a press release.
The probe by the detective department of the centre crime station (CCS) unit of the Hyderabad police revealed that Rs 1,500 crores were diverted by Parthasarathy either for the purpose of evergreening of loans or for proprietor trading using 20 companies which were either subsidiaries or bogus companies. “Investigation has revealed that the accused diverted Rs.720 crores of client finds which were lying in the banks accounts linked with their trading account. Another, Rs 680 crores were taken as loans by the accused from various banks and other NBFCs by pledging client securities without their consent,” assistant commissioner of police, SV Hari told ET.
In November, 2019, SEBI had revoked the pledge of securities with banks and NBFCs and returned the securities.
Parathasarathy who was arrested from his residence was presented before the ACMM court which remanded him to 14 days of judicial custody. His lawyer was not immediately available for comment.
Other than
bank, a similar complaint has been lodged by HDFC bank. “Two cases are registered against KSBL and Karvy commodities Pvt Ltd pertaining to loan fraud of Rs 340 crores and Rs 7 crores and they are under investigation,” Hari Krishna added.
Other than the city police, KSBL is also being probed by the Ministry of Corporate Affairs (MCA) for alleged irregularities under the Companies Act.
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