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ED freezes Karvy shares held by its top honchos
TIWN
ED freezes Karvy shares held by its top honchos
PHOTO : TIWN

Hyderabad, Sep 25 (TIWN) In further action against Karvy Stock Broking Limited (KSBL), the Enforcement Directorate (ED) has issued freezing order in respect of shares of the group held directly & indirectly by the Chairman and Managing Director of M/s KSBL, Comandur Parthasarathy, his sons, Rajat Parthasarathy and Adhiraj Parthasarathy, and their entities in order to safeguard the proceeds of the crime.

The development comes in the wake of search operations on Wednesday at six locations connected to M/s Karvy Stock Broking Limited (M/s KSBL) under PMLA 2002.  The ED had conducted search operations on various premises of Karvy Group of Companies, connected entities and at the residential premises of C. Parathasarathy. During the course of search, several incriminating evidences in the form of property documents, personal diaries, electronic devices, email dumps, etc have been seized & are being analyzed, ED officials stated on Saturday. 

It is reliably learnt that C. Parthasarathy is trying to off-load his shares in the group companies through private deals and thus, in order to preserve the proceeds of crime till further investigation, ED has issued a Freezing Order dated 24/09/2021 under PMLA 2002, and the estimated value of these shares has been arrived at Rs 700 crore as per the valuation for the year 2019-20, the ED officials stated.  It may be noted that ED had initiated money laundering investigation on the basis of FIRs registered by Telangana Police on the complaint of HDFC Bank alleging that M/s KSBL had illegally pledged the securities of its clients and taken a loan of Rs 329 crore and diverted the same. 

Another FIR has been registered by Central Crime Station, Hyderabad Police, for defrauding IndusInd Bank to the tune of Rs 137 crore and one more FIR has been registered by the Cyberabad Police, Hyderabad, for defrauding ICICI Bank to the tune of Rs 562.5 crore.  KSBL under the leadership of C. Parthasarathy had committed gross irregularities and all the illegally taken loans have become NPA. It is learnt that more FIRs are being registered by other banks and also individual shareholders/investors. The total loan proceeds taken from multiple banks using the same modus operandi is around Rs 2,873 crore, a statement issued by ED on Saturday said.

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