The Karvy group, which is under the police scanner for alleged cheating its investors, has rebutted the accusations claiming that have not misled or cheated any of its investors.
The group released statement over the complaints and the reports filed against Karvy stating, "The subject matter of the present complaint is about the investments made by these complainants with certain Developers, namely C&C Towers Ltd, Mirador Constructions Pvt Ltd, Bhagyalakshmi Homes LLP among others, who have received the investment money from these complainants and committed default in repaying the same."
The company has claimed that Karvy Private Wealth (KPW), one of the divisions of Karvy is a professionally managed wealth management business that guides investors on where to invest to get the best possible returns.
KPW only acts as a broker and in the processes, it recommends a variety of asset classes to individual investors depending on their goals and their risk appetite. "The division after adequate research recommends investments to High Net worth Investors in equities, mutual funds, debt instruments, real estate investments etc. The division only caters to select customers who fall in the high net worth category and clearly mentions the risks involved."
Karvy in its response to the current events said that the complainants had invested in high yield and thereby high-risk asset-backed investments. All Investments referenced to investors were done after adequate due diligence. The investors were explained of the risks involved in these instruments and provided them with all documents that were available to us from issuer companies. All these investors have taken informed decisions to invest in these products after perusing the documents available to them. The investors were issued documents directly by the issuers.
"Owing to unfavourable market conditions, various sectors, especially real estate has been going through a very bad phase for the last couple of years. Coupled with that, the funding opportunities from NBFC and banks have taken a major hit because of the recent defaults," read the statement by Karvy.
They have also claimed that Karvy has been making incessant efforts to recover the money from these entities and has also provided support to the investors by assisting them to initiate proceedings against these entities before National Company Law Tribunals (NCLT) at Bengaluru, Chandigarh, Mumbai and New Delhi.
"We submit that these investors, who have complained to the Bengaluru Police, are aware of the efforts being made by us, and in fact, most of them are also party to the said litigations. In our over 35-year-old history we have always kept the best interests of our customers in mind and will continue to do so," adds the rejoinder.
However, no physical action has been taken against the CEO of KPW, Abhijit Bhave and other top officials even though they were booked by the Bengaluru police.
(The story has been filed based on Karvy's response to IBTimes)