CS got arrested for issuance of a false Board resolution without having actual meeting
Continuing the investigation into the Karvy Stock Broking Limited fraud, Hyderabad Central Crime Station police arrested Y. Sailaja, the company secretary who worked for Karvy on Friday, accused of making false company resolutions and misrepresenting HDFC Bank to obtain loans.
Police claimed that Sailaja, as company secretary, fabricated a false resolution document that claimed to have been approved at the Karvy Stock Broking Limited board meeting in 2018, but according to the original record of minutes of Board of Directors meeting, the document was not resolved in the actual meeting.
“By misrepresenting the above resolution documents, the president and managing director of the company, C Parthasarathy, fraudulently obtained a loan of 3.5 billion rupees by illegally pledging the shares of HDFC bank clients and defaulting on payment,” said an official high-ranking police officer.
The arrested CS was taken to court and placed in preventive detention. To date, CCS police have arrested four people in this case, including Parthasarathy.