The Enforcement Directorate (ED) has attached movable and immovable assets worth Rs 110 crore in connection with a money laundering probe against Karvy Stock Broking.
The attached assets include land, buildings, shareholdings, 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 case was registered based on FIRs by the Hyderabad Police on the complaints of lending banks who alleged the Karvy Group took loans by illegally pledging their clients’ shares worth around Rs 2,800 crore and the said loans became NPAs after the release of the client’s securities according to the orders of NSE and SEBI.
Subsequently, the loans were diverted by a set of high-ranking functionaries working under the overall control of Parthasarthy.
The federal agency had earlier attached assets worth Rs 1,985 crore in this case. C Parthasarathy and Group CFO G Hari Krishna were earlier arrested by the ED and are presently on bail.
Large loan proceeds were transferred into shell insurance companies which did massive speculative share trading with Karvy Stock Broking as the stock broker, and ostensibly suffered massive losses. “A very complex web of financial transactions, using several shell…
