NEW DELHI: The Enforcement Directorate arrested Comandur Parthasarathy, the chairman and managing director of Hyderabad-based Karvy Stock Broking Limited (KSBL) and CFO G Krishna Hari, on Sunday in connection with an alleged money laundering and funds diversion scheme worth hundreds of crores of rupees.
According to an official at the Hyderabad central crime station who is aware of the situation, ED sleuths brought Parthasarathy to Hyderabad and produced him in the special court for ED cases, which remanded him to judicial detention for questioning.
The ED had arrested the duo under the PMLA (Prevention of Money Laundering Act) for an alleged fraud committed by Karvy Stock Broking Limited (KSBL) involving the illegal diversion of clients’ securities worth Rs. 2,873.82 crores, as well as the pledging of these securities with banks/NBFCs for loan purposes and subsequent loan default.
The ED launched the money laundering investigation in response to an FIR filed by HDFC Bank with the Hyderabad Police, which sought criminal charges against the accused for defrauding the bank. As a result, more FIRs were filed by other banks and investors. Following that, on September 22nd, 2021, ED recorded statements from numerous Karvy Group employees and searched 9 locations.
Earlier, the ED had frozen the CMD’s shares worth Rs. 700 crores, even as its investigation into the money trail continues to uncover proceeds of crime worth over Rs. 2000 crores.
In September, ED agents searched six addresses associated with the KSBL for possible money laundering. According to an official notification from the ED, the Karvy Group’s shares have been frozen.
Follow The420.in on