Karvy — karvy private wealth/karvy realty cheating customers with fake documentation.

Address:	Bangalore, Karnataka, 560066
Website:	www.karvywealth.com

My name is segu pravallika and invested in syndicated loan arranged by karvy wealth/karvy realty for a builder called “bharath hi-tecch builders private limited” (Bbl).

Bbl has advertised (Through karvy) and encouraged me to invest in the syndicate loan transaction of “bharath hi-tecch builders private limited” (Bbl) under syndicated loan agreement dated 22/11/2014.

And deed of adherence dated 22/12/2015 (“doa”) confirm the receipt of financial facility of an amount of rs: 15, 00, 000 (Rupees fifteen lakhs) paid by me in relation to the syndicate loan agreement.

As per the agreement bbl expected to pay an interest amount of 20% per annum on the principal amount by the expiry date (I. E. 22/11/2016). So, the total amount to settle is principal amount of (Rs: 15, 00, 000) + interest amount of (Rs; 2, 70, 000) by 22/11/2016 but bbl failed to settle and requested for an extension for principal and interest payment through email on 30th nov 2016.

On 30th nov 2016, bbl notified me through email that principal and interest payment will as follows.

1. Interest due till 30th nov 2016 - to be paid as soon as possible.
2. Principal extension period - 12 months
3. Interest rate - 20% per annum
4. Interest payment – quarterly.
5. Principal redemption - in 3 equal installments in the 13th, 14th & 15th month.

However, bbl failed to keep promise again. Interest due till 30th nov 2016 is not settled till now and quarterly interest payment never happened.

While in the process, i lost confidence on both karvy (As there is no reply to any email from 22/11/2016) and bbl failed to keep on its promises.

As the original intent of raising money is to develop a township in the land owned by bbl in bagepalli, i wished to secure my investment by taking a possession in the township. So, irequested for a site visit and after repeated emails you agreed to show the bagepalli site.

On 01/07/2017 i visited bbl bagepalli site and depressed by seeing the state of the development as there is no township, no development just barren land. Then i realized funds raised through the syndicated loan has been diverted and bbl never had intention of developing a township.

Karvy wealth/karvy realty acted as the facility agent and has actively and intentionally induced me to make the investment. The syndicated loan agreement between you and bbl executed on 22/11/2014 and i entered syndicated loan 22/12/2015 (More than 1 year gap). While knowing, there is no progress on bbl township you misrepresented facts and cheated me by saying proper due diligence has been completed by karvy and no risk to investment.

You confirmed borrower (Bbl) is raising funds for the construction and development of the land near bagepalli, chikballapur district by signing page 4-point b in security trustee appointment agreement. You also confirmed borrower has compiled with all legal requirements page 4-point d. Being a facility agent karvy is legally obliged to work in the interest of lenders but karvy completely failed in its due diligence and in handling of the delay payment.

I am deeply disappointed on karvy way of handling this entire deal. You never respond to any email from nov-2017 onwards. Irresponsible and unethical behavior will lead to loss of confidence in similar kind of deals and effect liquidity in the system.

I tried to escalate this matter by sending email to senior management of karvy at [protected]@karvy.com. However, all efforts are useless, same irresponsible and unethical behavior continued and no response so far.
I later asked for the refund of the principal with the interest amount, but the bharath hi-tecch builders private limited apologized and said that the recent demonetization policy of the government has further aggravated the liquidity issue.

Please look into the issue and close it asap.