Police issue notices to Karvy Stock Broking

The Central Crime Station (CCS) police here on Saturday sent notices to Karvy Stock Broking Ltd (KSBL), asking the complainant to appear before the investigating officer for recording the statement on a complaint made against Deccan Chronicle Holding Ltd (DCHL) for alleged cheating, breach of trust and forgery.

CCS had to send written notices as Karvy representatives failed to turn up to assist in initiating the investigation process ever since they lodged the complaint, according to police officials. Until the initial procedure, including the recording of the statement of the complainant among other parties, is completed, the police can not proceed with the investigation.

It may be recalled that the police had filed an FIR (first information report) based on the complaint received on July 31, 2012 from M Umamaheshwar Reddy a legal officer working with KSBL against all the three promoters of DCHL with regard to the transfer of shares on which the Future Capital Holdings Ltd already had a non-disposal undertaking from DCHL to other entities.

The stock broking and financial services firm claimed it had transferred the shares to Religare and IDFC after the DCHL promoters mislead them into believing that the earlier agreement with Future Capital was terminated. Karvy had also accused the Deccan Chronicle promoters of forging a confirmation letter purported to have been written by them for the perusal of Future Capital on the available volume of DCHL shares in the accounts held by them.

While the police need to record the statement of the complainant to ascertain full facts and as a matter of procedure to approach the other parties, including DCHL promoters against whom the complaint is directed. "Now, that we have sent written notices, which normally give three days time to respond, we expect them to come and give a statement on Monday," a police official said.