The Hyderabad police on Thursday arrested the chief executive officer (CEO) and chief financial officer (CFO) of scam-hit Karvy Stock Broking Pvt Ltd in connection with the 137 crores loan default case.

Rajiv Ranjan Singh (52), CEO, and G. Krishna Hari (63), CFO, were taken into custody by officials of the Central Crime Station (CCS) of the Hyderabad police. Before this, C Parthasarathy, the chairman of the company was arrested on August 19 on charges of defaulting 137 crore loan to IndusInd Bank.

The arrests were made after the vice-president of IndusInd Bank, Hyderabad, lodged a complaint with the police, alleging that Karvy availed credit facilities to the tune of 137 crores from the bank by pledging securities/shares and personal guarantee of its chairman and managing director Parthasarathi.

The bank alleged that Karvy officials suppressed facts that the securities belonging to clients were pledged without their consent. In 2019, the…

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