ICICI Bank moves Hyderabad DRT to recover dues from Karvy
The Hyderabad DRT has asked Karvy to repay the dues within 15 days, failing which the firm's properties will be attached.
December 20, 2019 / 06:29 PM IST
ICICI Bank has approached Debt Recovery Tribunal (DRT) in Hyderabad to recover dues from Karvey Stock Broking. The broking firm owes Rs 629 crore to the private lender.
In an order issued on December 20, the Hyderabad DRT has asked Karvy to repay the dues within 15 days, failing which the firm's properties will be attached. The DRT has also restrained Karvy from any transfer of these assets.
Karvy Group's former Chairman & Managing Director C Parthasarathy and director Rajat Parthasarathy have been issued notices to submit their passports, restraining them from leaving the country during the case proceedings. They have also been asked to disclose their assets to the Tribunal.
The next hearing of the case will be held on January 9, 2020.
After being denied any relief from the markets regulator earlier this month, lenders decided to approach the DRT to recover loans by sale of broker's assets that were pledged with the banks.
"Karvy's promoters pledged their own stake and other assets which are around worth of Rs 5,000 crore," a source had earlier told Moneycontrol.
The DRT comes under the ambit of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002, which allows banks and other financial institutions to auction assets to recover bad loans.
The Karvy case came to light after it emerged that it had pledged securities of its clients to raise as much as Rs 2,300 crore by passing them off as its own.