EY's forensic audit on Karvy to focus on fund diversion of Rs 1,100 cr

The company stopped giving financial information on the group companies, leading to multiple downgrades by rating firm ICRA in November.

The alleged fund diversion worth Rs 1,100 crore by Karvy Stock Broking to its real estate arm in the past three years and the reasons for deterioration in the financial metrics of the group companies will be the focus of the forensic audit to be conducted by EY. 

Karvy Realty India, which allegedly received the funds from its parent, is a real estate brokerage firm, and also on-lends to other subsidiaries of the group. 

“There is absolutely zero information on how the funds were used by Karvy Realty and what the promoters did with such a huge sum of money,”