HYDERABAD: As many as six directors in nine alleged shell companies currently under the scanner of Hyderabad police in the ongoing
Karvy Stock Broking Ltd
's (KSBL)
bank
fraud case are ordinary employees of Karvy, top officials said.
The role of nine companies came to light after the officials analysed the forensic audit and found out how bank loans were first diverted to subsidiaries and later to these alleged shell companies.
“Though these nine companies are registered firms, we found that they are not typical functional firms, where employees work. Some of the declared directors of these nine companies are ordinary employees of KSBL,'' a top source probing the investigation told TOI.
KSBL's chief financial officer (
CFO
) G Krishna Hari, who was arrested on Thursday was director in five of these companies in 2014, when those companies were initially registered.
He later quit as director in all these companies and shifted to the parent KSBL.
KSBL chairman and managing director C Parthasarathy and other accused allegedly diverted the complainant banks' loans to their subsidiary companies before it reached the alleged shell companies, police said.
“The accounts of these shell companies were again in the control of KSBL and these shell companies were declared as their clients, whose money was invested in the stock market for trading,” said an official.
He said this was done to show an increase in KSBL's turnover, CRISIL rating, and market share. “In one of the nine companies, Parthasarathy is a shareholder, but not a director,ut not a director'' the official added.
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