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.
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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.
HDFC bank registered a complaint alleging that Karvy Stock Broking Limited (KSBL) had illegally pledged the securities of some of its clients, along with taking a loan of Rs 329 crore. Following that, ED had already issued ECIR i.e. Enforcement Case Information Report, the FIR equivalent under PMLA.
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ED earlier conducted searches at six locations of KSBL, in addition to freezing shares worth Rs 700 crores of Karvy Group held by Comandur along with his sons Rajat and Adiraj Parthasarathy.
Prima facie investigations revealed that the company took total loans worth Rs 3,000 crores, of which Rs 1,096 crores were transferred by KSBL to Karvy Realty between 2016-19. The probe, which employed anti-forensic tools also highlighted the intentional deletion of files and emails from various servers under instruction by Parthasarathy.
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