ED arrests Karvy Group Chairman C Parthasarathy in Rs 2,000-crore security scam

Representative image

The Enforcement Directorate (ED), on January 27, arrested Chairman and MD of Karvy Group, Comandur Parthasarathy along with CFO, G Hari Krishna during the ongoing investigation in the Rs 2,000 crore security and money laundering case. The court has allowed four days of ED custody to the accused.

Parthasarathy, who was earlier lodged in the Chandhalguda jail, Hyderabad, has been booked by ED under the Prevention of Money Laundering Act (PMLA) basis the FIRs filed at the Central Crime Station (CCS), Hyderabad.

Karvy group promoter C Parthasarathy held for defaulting on bank loan

While the Hyderabad police had alleged that Karvy directors had defrauded IndusInd bank of Rs 137 crores, the Cyberabad police had registered a similar case against the company for defrauding ICICI bank of Rs 562 crore. Reportedly, the client securities had been transferred to Karvy's Demat account without their consent. Further investigations revealed that Karvy had defaulted, diverting the funds into sister companies like Karvy Realty India Private Limited, of which Parthasarathy is a director.