Karvy Yugandhar cites rules to avoid arrest
Co-accused in Karvy financial fraud Meka Yugandhar sought to take shelter under his role of non-executive director in the company to avoid arrest along with his cofounder of Karvy and prime accused C. Parthasarathy even as the Enforcement Directorate (ED) decided to investigate the multi-crore scam.
The ED will formally register a case and is said to have been in touch with the Hyderabad city police who have already arrested Parthasarathy and two others. Sources said the preliminary investigations indicated that the Karvy top management, apart from investing in stocks, also diverted funds for other purposes and the ED would focus on the money laundering angle.
Significantly,
Yugandhar is the only top executive who managed to evade arrest despite being named as accused in the scam by all the three banks HDFC, IndusInd and ICICI with both the Hyderabad and Cyberabad police. Inquiries by this newspaper revealed that he was summoned by the Central Crime Station (CCS) sleuths of Hyderabad on Monday but was let off while the
Cyberabad police are yet to question him. The patronage enjoyed by Yugandhar was evident after the city police arrested chief operating officer (COO) Rajiv Ranjan Singh and chief financial officer (CFO) G. Krishna Hari on Thursday.
While he claimed that is is a non executive director, according to Karvy website Yugandhar is Managing Director and a founder member of the group. Further it says “Yugandhar has played a key role in building strong relationships with public sector banks and other PSUs” and “his guidance helped substantially build retail investor wealth.”
Sources said Yugandhar feigned ignorance about the misuse of clients’ shares as well as funds by Karvy.