ED attaches assets worth Rs 110 crore in Karvy Group money laundering case
India Today
The ED had lodged a case under the Prevention of Money Laundering Act (PMLA) against Karvy Stock Broking Ltd (KSBL) and its chairman Comandur Parthasarathy.
The Enforcement Directorate (ED) on Saturday attached assets worth Rs 110 crore in connection with a money laundering case against Karvy Stock Broking Ltd (KSBL).
The attached assets include properties in the form of land, buildings, share holdings, cash, foreign currency and jewellery. The ED had lodged a case under the Prevention of Money Laundering Act (PMLA) against KSBL and its Chief Managing Director (CMD) Comandur Parthasarathy and others.
The ED had earlier attached assets worth Rs 1,984.84 crore in this case. C Parthasarathy and Group CFO G Hari Krishna were earlier arrested by the ED and are presently on bail.
The probe agency initiated an investigation on the basis of FIRs filed by the Hyderabad Police, who reported that the Karvy Group had availed large amounts of loans by illegally pledging their clients’ shares worth about Rs 2,800 crore.
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The loans became non-performing assets (NPA) after the release of the client's securities as per the orders of the National Stock Exchange (NSE) and Securities and Exchange Board of India (SEBI). Subsequently, the loans were diverted by a set of high ranking functionaries working under the overall control of the CMD.
According to the ED, funds were diverted to related companies like the Karvy Data Management Service (KDMSL) and Kribhco Infrastructure Private Limited (KRIL), which was set up for real estate ventures. The diverted loan funds were routed via multiple defunct Non-bank financial institutions (NBFCs) to Karvy Financial Services Limited (KFSL-NBFC) to clear its debts.
