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Ksbl, Promoter Booked For 159cr Loan Default | Hyderabad News

HYDERABAD: Central Crime Station (CCS) police have registered a case against Karvy Stock Broking Limited (KSBL), its promoter C Parthasarathy and others based on the complaint of Axis Bank for not repaying 159 crore borrowed from the bank in 2009.
On May 27, V Ramachandra Guptha, an employee of Axis Bank, Greenlands, Begumpet, lodged a complaint alleging that in July 2009 KSBL representatives approached the bank with a request for sanction of bank guarantee limit.
“Taking promoter of KSBL, C Parthasarathy as guarantor, the bank sanctioned 82.69 crore as over draft against securities, 47.07 crore as over draft against book debts, 26.06 crore as loan against property and 3.42 crore was invoked as bank guarantee to KSBL. In total, KSBL has to pay 159.26 crore and interest as per contractual terms and conditions to Axis Bank,” the complainant alleged.
However, KSBL did not repay the dues which eventually led the bank to declare it as a non-performing asset.
Later, the trading activities of KSBL in capital markets and commodity markets were suspended by NSE and BSE in 2019 and it has impacted the recoverable amount from KSBL and Axis Bank reported the account as fraud on December 23, 2020. “So, please initiate necessary legal action against KSBL, its promoters, including C Parthasarathy, directors and other persons connected to the matter,” the complainant alleged.
Based on the complaint, police registered a case under Sections 406, 409, 420 r/w 34 of the Indian Penal Code (IPC) against KSBL, Parthasarathy and others.

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