Karvy scam: 1,300 Hyderabad clients complained to NSE

HYDERABAD: Investigations into the Rs 780 crore bank loan default case of Karvy Stock Broking Ltd (KSBL) has revealed how 1,300 clients across the city had lodged complaints with National Stock Exchange (NSE) against KSBL between 2016 and 2021.
“We are getting in touch with these clients to know how they got cheated by trusting KSBL and their statements are being recorded,” a police officer said.
Police said NSE officials informed them how the KSBL chairman and MD C Parthasarathy and a few of his employees allegedly erased the data.
Similarly, police also obtained the forensic audit report done by Ernst and Young (EY) against KSBL.
“As per the EY report and its summary, after Parthasarathy was informed by NSE that EY would visit KSBL's premises to access the systems of key employees, they were noted to have deleted various files and emails from their respective systems,” Hyderabad police told Nampally court quoting the FY report.
The Ey report further says: “The employees, including Parthasarathy used anti-forensic tools to wipe off data. When asked about the usage of such a tool, he denied using such a tool.''
Parthasarathy maintained in his bail petition that non-repayment of loan was not an offence. He also told cops that he was trying to make the repayment of loan to all the concerned banks.
Police said that Parthasarathy was primarily authorised by the board of directors of KSBL to handle the issues of loan from 2013 and had necessary permission to take loan against securities and signed each document and executed personal guarantee for the loans.