A case has been registered against Karvy Stock Broking promoter C. Parthasarathy and others for cheating ICICI Bank of Rs 563 crore.

According to a press release by the police on Tuesday night, the case was charged under Sections 406, 420, and now 34 of IPC against the accused persons. Funds raised by KSBL by promising shares of its six bankers were given to the firm’s bank accounts and not into “Stock Broker Client Account”, which is a breach of the SEBI guidelines.
“Besides, all contracts on securities were closed without approval and securities were transferred to end clients of KSBL, thereby critically affecting the security of all lenders, including ICICI Bank,” the police said.

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