ED attaches assets worth ₹134 crore in Karvy group scam
The Hindu
ED attaches assets worth ₹134.02 cr in Karvy fraud case. Funds diverted to related companies via defunct NBFCs. C. Parthasarathy had special privilege rights to subscribe to additional equity shares of KFintech. 1,000 Non-Convertible Redeemable Preference Shares allotted to Adhiraj Parthasarathy in consideration for termination of shareholders' agreement.
The officials from the Directorate of Enforcement (ED) provisionally attached under the Prevention of Money Laundering Act-2002 assets worth ₹134.02 crore in the form of 1,000 Non-Convertible Redeemable Preference Shares of KFin Technologies Ltd. (KFintech). The total attachment in this case stands at ₹2,229.56 crore, according to the officials.
The shares were held in the name of Adhiraj Parthasarathy, son of C. Parthasarathy, the CMD of Karvy Stock Broking Ltd. (KSBL).
ED had initiated a probe following FIRs registered by the Central Crime Station (CCS) of Hyderabad, alleging that KSBL availed of loans by illegally pledging its clients’ shares worth about ₹2,800 crore and did not repay the loans. The loans were subsequently declared as NPA and as fraud accounts.
Explained: Why SEBI banned this Hyderabad-based firm from taking on new clients
The funds were diverted to related companies such as Karvy Data Management Services Ltd. and Karvy Realty India Ltd.. The diverted loan funds were routed via multiple defunct NBFCs to Karvy Financial Services Limited (an NBFC of the Karvy Group).
The investigation by ED also revealed that C. Parthasarathy had special privilege rights to subscribe to additional equity shares of KFintech at a predetermined price as per the shareholders agreement, dated August 3, 2017. In consideration for the termination of the shareholders’ agreement and extinguishment of all such rights, KFintech allotted 1,000 Non-Convertible Redeemable Preference Shares in the name of Adhiraj Parthasarathy at par on October 25, 2021.
“Parthasarathy and his concerns had made an arrangement that the said consideration from KFintech are taken in the name of Adhiraj Parthasarathy as he is not an accused in the FIRs. Further, the said property in the form of Redeemable Preference Shares were concealed by Adhiraj Parthasarathy and were not deliberately disclosed in his submissions made before the ED during the course of investigation,” said the officials.
“We are judges and therefore, cannot act like Mughals of a bygone era ... the writ courts in the guise of doing justice cannot transcend the barriers of law,” the High Court of Karnataka observed while setting aside an order of a single judge, who in 2016 had extended the lease of a public premises allotted to a physically challenged person to 20 years contrary to 12-year period stipulated in the law.
The High Court of Karnataka on Monday declined to interfere, at present, in the investigation against a Bharatiya Janata Party worker, who is among the accused persons facing charges of circulating obscene clips, related to “morphed” images and videos clips related to Prajwal Revanna, former Hassan MP, in public domain through pen drives and other modes.
The 16th edition of Bhoomi Habba was held on June 8, at the Visthar campus. The festival drew a vibrant crowd who came together to celebrate eco-consciousness through a variety of engaging activities, creative workshops, panel discussions, interactive exhibits and performances, all centered around this year’s theme: “Save Water, Save Lives.”