Enforcement Directorate (A'bad Zone) has filed a supplementary charge sheet in the 2005 initial public offering (IPO) scam.
The Ahmedabad zone of the Enforcement Directorate (ED) has filed a supplementary charge sheet in the 2005 initial public offering (IPO) scam against 24 individuals and entities for rigging the process of public issue and cornering huge profits illegally.
ED has so far attached property worth Rs108 core held by different individuals in the scam as proceeds of crime. In a supplementary case, ED has registered a case against Dipak Panchal, Manoj Skasaria, Vijay Khalas, Dharmesh Mehta, Dhaval Kataria, Karvy Consultants, Karvy Stock Broking, Karvy Computershare and Pratik Stock Vision.
It has also filed a case against 15 employees of the Karvy Group and Indian Overseas Bank in this connection. Earlier, in December 2012, ED had filed a case for prosecution against Karvy Group and its chairman and other individuals, namely Parag Jhaveri, Dushyant Dalal, Puloma Dalal, Purushottam Budhwani and Sugandh Estate Investment.
In 2005, Yes Bank and IDFC issued an IPO. During the process, individuals, investors, registrar to the issue (RTI), depository participants (DP) connived with each other illegally to obtain shares of companies that were specifically earmarked for retail individual investors.
“During the investigation, ED had found that fictitious documents, bank accounts and demat accounts were opened with Indian Overseas Bank and Karvy, respectively. Both banks and DP failed to follow know your customer (KYC) norms issued by respective regulators. ED also found that thousands of demat accounts sharing a few common addresses had been opened,” a press statement issued by the investigating agency said. It added that bank managers have misused their discretionary powers to sanction loans to these bogus account holders. Some operators used these accounts and applied for shares during IPOs and cornered crores of shares.
“After allotment, these shares were fraudulently transferred to master account using off market trades and thereafter sold at huge profit margin,” said the ED.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}