Hyderabad, Aug 19 (PTI) Scam-hit Karvy Stock Broking Limited Chairman C Parthasarathy was arrested here on Thursday on charges of defaulting a bank loan, police said.
Parthasarathy was arrested for defaulting on a loan taken from the IndusIndbank and diverting the fund to other bank accounts, Avinash Mohanty, Joint Commissioner of Police, (Detective Department) said.
The banks in their complaint alleged that Karvy group represented by Parthasarathy unlawfully pledged the shares of its clients and availed loans. The loan amounts have been diverted to other firms and subsequently defaulted on repayment, the official added.
According to the complaint filed by IndusInd Bank Karvy availed credit facilities of Rs 137 crore from the bank by pledging securities/shares and personal guarantee of Parthasarathy without the clients’ consent and by misusing power of attorney.