Who took my money: The builder or wealth adviser?

The distress in India’s real estate sector has moved from non-banking financial companies (NBFCs) and mutual funds exposed to them to the opaque world of privately-placed unlisted debt, usually marketed to high net-worth individuals (HNIs) by wealth management firms. A major player in this space, Karvy Private Wealth, is now in the midst of a set of messy defaults on real estate loans it facilitated using investors’ money. On 14 June 2019, angry investors filed a criminal case against various companies and executives in the group, and Abhijit Bhave, the chief executive officer of Karvy Private Wealth, a division of Karvy Stock Broking Ltd and part of the Karvy group of companies, alleging cheating and criminal breach of trust. Mint has a copy of the FIR, which was filed by one of the investors, Ketki Shah Talati, in Bengaluru. According to other investors, their complaints have been clubbed in the same FIR.

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