ICICI bank files a case against Karvy Stock Broking Ltd for cheating Rs. 563 crore

New Delhi: India's Private lender ICICI Bank has filed a case against the Karvy Stock Broking Ltd promoter C. Parthasarathy and others for allegedly cheating ICICI Bank to the tune of Rs 563 crore.

 

According to sources, the police issued a press release on Tuesday night states the case was booked under Sections 406 (criminal breach of trust), 420, r/w 34 (cheating) of IPC against the accused. Funds raised by KSBL by pledging shares of its six bankers were transferred to the firm's own bank accounts, and not into Stock Broker Client Account', which is in contravention with the SEBI guidelines, the police said.

 

Further, all pledges on securities were closed without approval, and securities were transferred to end clients of KSBL thereby severely impacting the security of all lenders including ICICI Bank, it said. 

 

According to PTI, The case was transferred to the Economic Offences Wing of Cyberabad, and a special team was formed for the investigation. Parthasarathy was arrested by the city police here on August 19 on charges of defaulting on a Rs 137 crore loan taken from IndusInd Bank.

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